Correlation Between LACTATE NATURA and Societatea Nationala

Can any of the company-specific risk be diversified away by investing in both LACTATE NATURA and Societatea Nationala 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 LACTATE NATURA and Societatea Nationala into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LACTATE NATURA SA and Societatea Nationala de, you can compare the effects of market volatilities on LACTATE NATURA and Societatea Nationala 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 LACTATE NATURA with a short position of Societatea Nationala. Check out your portfolio center. Please also check ongoing floating volatility patterns of LACTATE NATURA and Societatea Nationala.

Diversification Opportunities for LACTATE NATURA and Societatea Nationala

0.0

Correlation Coefficient

LACTATE NATURA  Societatea Nationala

Pay attention - limited upside

The 3 months correlation between LACTATE and Societatea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LACTATE NATURA SA and Societatea Nationala de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Societatea Nationala and LACTATE NATURA 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 LACTATE NATURA SA are associated (or correlated) with Societatea Nationala. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Societatea Nationala has no effect on the direction of LACTATE NATURA i.e., LACTATE NATURA and Societatea Nationala go up and down completely randomly.

Pair Corralation between LACTATE NATURA and Societatea Nationala

If you would invest (100.00) in LACTATE NATURA SA on October 25, 2024 and sell it today you would earn a total of  100.00  from holding LACTATE NATURA SA or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

LACTATE NATURA SA  vs.  Societatea Nationala de

LACTATE NATURA SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LACTATE NATURA SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, LACTATE NATURA is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Societatea Nationala

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Societatea Nationala de has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Societatea Nationala is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with LACTATE NATURA and Societatea Nationala

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

The idea behind LACTATE NATURA SA and Societatea Nationala de 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.