Correlation Between Natural Health and UMS UNITED

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

By analyzing existing cross correlation between Natural Health Trends and UMS UNITED MED, you can compare the effects of market volatilities on Natural Health and UMS UNITED 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 Health with a short position of UMS UNITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Health and UMS UNITED.

Diversification Opportunities for Natural Health and UMS UNITED

0.0

Correlation Coefficient

Natural Health  UMS UNITED

Pay attention - limited upside

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

Pair Corralation between Natural Health and UMS UNITED

If you would invest  380.00  in Natural Health Trends on October 5, 2024 and sell it today you would earn a total of  60.00  from holding Natural Health Trends or generate 15.79% return on investment over 90 days.

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

Natural Health Trends  vs.  UMS UNITED MED

Natural Health Trends

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Natural Health Trends has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

UMS UNITED MED

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UMS UNITED MED has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, UMS UNITED is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Natural Health and UMS UNITED

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

The idea behind Natural Health Trends and UMS UNITED MED 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.