Correlation Between NAT ABSOLUTE and Future Park

Can any of the company-specific risk be diversified away by investing in both NAT ABSOLUTE and Future Park 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 NAT ABSOLUTE and Future Park into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NAT ABSOLUTE TECHNOLOGIES and Future Park Leasehold, you can compare the effects of market volatilities on NAT ABSOLUTE and Future Park 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 NAT ABSOLUTE with a short position of Future Park. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAT ABSOLUTE and Future Park.

Diversification Opportunities for NAT ABSOLUTE and Future Park

-0.3

Correlation Coefficient

NAT ABSOLUTE  Future Park

Very good diversification

The 3 months correlation between NAT and Future is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding NAT ABSOLUTE TECHNOLOGIES and Future Park Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Future Park Leasehold and NAT ABSOLUTE 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 NAT ABSOLUTE TECHNOLOGIES are associated (or correlated) with Future Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Future Park Leasehold has no effect on the direction of NAT ABSOLUTE i.e., NAT ABSOLUTE and Future Park go up and down completely randomly.

Pair Corralation between NAT ABSOLUTE and Future Park

Assuming the 90 days trading horizon NAT ABSOLUTE TECHNOLOGIES is expected to under-perform the Future Park. But the stock apears to be less risky and, when comparing its historical volatility, NAT ABSOLUTE TECHNOLOGIES is 59.67 times less risky than Future Park. The stock trades about -0.07 of its potential returns per unit of risk. The Future Park Leasehold is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,110  in Future Park Leasehold on September 12, 2024 and sell it today you would lose (1,110) from holding Future Park Leasehold or give up 100.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	86.89%
Values	Daily Returns

NAT ABSOLUTE TECHNOLOGIES  vs.  Future Park Leasehold

NAT ABSOLUTE TECHNOLOGIES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NAT ABSOLUTE TECHNOLOGIES has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Future Park Leasehold

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Future Park Leasehold are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Future Park reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NAT ABSOLUTE and Future Park

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

The idea behind NAT ABSOLUTE TECHNOLOGIES and Future Park Leasehold 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.