Correlation Between Vytrus Biotech and Naturhouse Health
Can any of the company-specific risk be diversified away by investing in both Vytrus Biotech and Naturhouse Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Vytrus Biotech and Naturhouse Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vytrus Biotech SA and Naturhouse Health SA, you can compare the effects of market volatilities on Vytrus Biotech and Naturhouse Health and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Vytrus Biotech with a short position of Naturhouse Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vytrus Biotech and Naturhouse Health.
Diversification Opportunities for Vytrus Biotech and Naturhouse Health
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vytrus and Naturhouse is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Vytrus Biotech SA and Naturhouse Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naturhouse Health and Vytrus Biotech is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Vytrus Biotech SA are associated (or correlated) with Naturhouse Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naturhouse Health has no effect on the direction of Vytrus Biotech i.e., Vytrus Biotech and Naturhouse Health go up and down completely randomly.
Pair Corralation between Vytrus Biotech and Naturhouse Health
Assuming the 90 days trading horizon Vytrus Biotech SA is expected to under-perform the Naturhouse Health. But the stock apears to be less risky and, when comparing its historical volatility, Vytrus Biotech SA is 1.04 times less risky than Naturhouse Health. The stock trades about -0.06 of its potential returns per unit of risk. The Naturhouse Health SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 165.00 in Naturhouse Health SA on August 27, 2024 and sell it today you would earn a total of 4.00 from holding Naturhouse Health SA or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vytrus Biotech SA vs. Naturhouse Health SA
Performance |
| Timeline |
| Vytrus Biotech SA |
| Naturhouse Health |
Vytrus Biotech and Naturhouse Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vytrus Biotech and Naturhouse Health
The main advantage of trading using opposite Vytrus Biotech and Naturhouse Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vytrus Biotech position performs unexpectedly, Naturhouse Health can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Naturhouse Health will offset losses from the drop in Naturhouse Health's long position.| Vytrus Biotech vs. Cellnex Telecom SA | Vytrus Biotech vs. Plasticos Compuestos SA | Vytrus Biotech vs. Tier1 Technology SA | Vytrus Biotech vs. Hispanotels Inversiones SOCIMI |
| Naturhouse Health vs. Atrys Health SL | Naturhouse Health vs. Plasticos Compuestos SA | Naturhouse Health vs. Home Capital Rentals | Naturhouse Health vs. Parlem Telecom Companyia |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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