Correlation Between Natural Grocers and WEBUY GLOBAL

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

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

Diversification Opportunities for Natural Grocers and WEBUY GLOBAL

-0.33

Correlation Coefficient

Natural Grocers  WEBUY GLOBAL

Very good diversification

The 3 months correlation between Natural and WEBUY is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Natural Grocers by and WEBUY GLOBAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEBUY GLOBAL LTD and Natural Grocers 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 Grocers by are associated (or correlated) with WEBUY GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEBUY GLOBAL LTD has no effect on the direction of Natural Grocers i.e., Natural Grocers and WEBUY GLOBAL go up and down completely randomly.

Pair Corralation between Natural Grocers and WEBUY GLOBAL

Given the investment horizon of 90 days Natural Grocers by is expected to generate 0.17 times more return on investment than WEBUY GLOBAL. However, Natural Grocers by is 5.92 times less risky than WEBUY GLOBAL. It trades about 0.0 of its potential returns per unit of risk. WEBUY GLOBAL LTD is currently generating about -0.02 per unit of risk. If you would invest  3,958  in Natural Grocers by on December 28, 2024 and sell it today you would lose (146.00) from holding Natural Grocers by or give up 3.69% of portfolio value over 90 days.

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

Natural Grocers by  vs.  WEBUY GLOBAL LTD

Natural Grocers by

Risk-Adjusted Performance

Very Weak

Over the last 90 days Natural Grocers by has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Natural Grocers is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

WEBUY GLOBAL LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days WEBUY GLOBAL LTD 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 fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Natural Grocers and WEBUY GLOBAL

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

The idea behind Natural Grocers by and WEBUY GLOBAL LTD 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.