Correlation Between Natural Alternatives and Xiabuxiabu Catering

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

By analyzing existing cross correlation between Natural Alternatives International and Xiabuxiabu Catering Management, you can compare the effects of market volatilities on Natural Alternatives and Xiabuxiabu Catering 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 Alternatives with a short position of Xiabuxiabu Catering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Alternatives and Xiabuxiabu Catering.

Diversification Opportunities for Natural Alternatives and Xiabuxiabu Catering

0.41

Correlation Coefficient

Natural Alternatives  Xiabuxiabu Catering

Very weak diversification

The 3 months correlation between Natural and Xiabuxiabu is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Natural Alternatives Internati and Xiabuxiabu Catering Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiabuxiabu Catering and Natural Alternatives 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 Alternatives International are associated (or correlated) with Xiabuxiabu Catering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiabuxiabu Catering has no effect on the direction of Natural Alternatives i.e., Natural Alternatives and Xiabuxiabu Catering go up and down completely randomly.

Pair Corralation between Natural Alternatives and Xiabuxiabu Catering

Given the investment horizon of 90 days Natural Alternatives International is expected to generate 1.6 times more return on investment than Xiabuxiabu Catering. However, Natural Alternatives is 1.6 times more volatile than Xiabuxiabu Catering Management. It trades about -0.04 of its potential returns per unit of risk. Xiabuxiabu Catering Management is currently generating about -0.13 per unit of risk. If you would invest  431.00  in Natural Alternatives International on December 24, 2024 and sell it today you would lose (42.00) from holding Natural Alternatives International or give up 9.74% of portfolio value over 90 days.

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

Natural Alternatives Internati  vs.  Xiabuxiabu Catering Management

Natural Alternatives

Risk-Adjusted Performance

Very Weak

Over the last 90 days Natural Alternatives International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Xiabuxiabu Catering

Risk-Adjusted Performance

Very Weak

Over the last 90 days Xiabuxiabu Catering Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Natural Alternatives and Xiabuxiabu Catering

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

The idea behind Natural Alternatives International and Xiabuxiabu Catering Management 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 CEOs Directory module to screen CEOs from public companies around the world.