Correlation Between Natural Grocers and Voya Solution

Can any of the company-specific risk be diversified away by investing in both Natural Grocers and Voya Solution 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 Natural Grocers and Voya Solution into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Natural Grocers by and Voya Solution Servative, you can compare the effects of market volatilities on Natural Grocers and Voya Solution 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 Natural Grocers with a short position of Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Grocers and Voya Solution.

Diversification Opportunities for Natural Grocers and Voya Solution

0.06

Correlation Coefficient

Natural Grocers  Voya Solution

Significant diversification

The 3 months correlation between Natural and Voya is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Natural Grocers by and Voya Solution Servative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution Servative and Natural Grocers 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 Natural Grocers by are associated (or correlated) with Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution Servative has no effect on the direction of Natural Grocers i.e., Natural Grocers and Voya Solution go up and down completely randomly.

Pair Corralation between Natural Grocers and Voya Solution

Given the investment horizon of 90 days Natural Grocers by is expected to generate 11.07 times more return on investment than Voya Solution. However, Natural Grocers is 11.07 times more volatile than Voya Solution Servative. It trades about 0.04 of its potential returns per unit of risk. Voya Solution Servative is currently generating about 0.02 per unit of risk. If you would invest  4,912  in Natural Grocers by on February 19, 2025 and sell it today you would earn a total of  210.00  from holding Natural Grocers by or generate 4.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Natural Grocers by  vs.  Voya Solution Servative

Natural Grocers by

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Natural Grocers by are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Natural Grocers may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Voya Solution Servative

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Solution Servative are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Voya Solution is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Natural Grocers and Voya Solution

The main advantage of trading using opposite Natural Grocers and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natural Grocers position performs unexpectedly, Voya Solution 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 Voya Solution will offset losses from the drop in Voya Solution's long position.

The idea behind Natural Grocers by and Voya Solution Servative pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.