Correlation Between Return Stacked and Natural Grocers

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

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

Diversification Opportunities for Return Stacked and Natural Grocers

-0.49

Correlation Coefficient

Return Stacked  Natural Grocers

Very good diversification

The 3 months correlation between Return and Natural is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Return Stacked Bonds and Natural Grocers by in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Grocers by and Return Stacked 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 Return Stacked Bonds are associated (or correlated) with Natural Grocers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Grocers by has no effect on the direction of Return Stacked i.e., Return Stacked and Natural Grocers go up and down completely randomly.

Pair Corralation between Return Stacked and Natural Grocers

Given the investment horizon of 90 days Return Stacked is expected to generate 7.4 times less return on investment than Natural Grocers. But when comparing it to its historical volatility, Return Stacked Bonds is 7.79 times less risky than Natural Grocers. It trades about 0.09 of its potential returns per unit of risk. Natural Grocers by is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  4,193  in Natural Grocers by on January 28, 2025 and sell it today you would earn a total of  685.00  from holding Natural Grocers by or generate 16.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Return Stacked Bonds  vs.  Natural Grocers by

Return Stacked Bonds

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Return Stacked Bonds are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Return Stacked is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Natural Grocers by

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Natural Grocers by are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Natural Grocers exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Return Stacked and Natural Grocers

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

The idea behind Return Stacked Bonds and Natural Grocers by 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.