Correlation Between Applied Materials and Natural Health
Can any of the company-specific risk be diversified away by investing in both Applied Materials and Natural Health 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 Applied Materials and Natural Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Materials and Natural Health Farm, you can compare the effects of market volatilities on Applied Materials and Natural Health 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 Applied Materials with a short position of Natural Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Materials and Natural Health.
Diversification Opportunities for Applied Materials and Natural Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Applied and Natural is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Applied Materials and Natural Health Farm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Health Farm and Applied Materials 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 Applied Materials are associated (or correlated) with Natural Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Health Farm has no effect on the direction of Applied Materials i.e., Applied Materials and Natural Health go up and down completely randomly.
Pair Corralation between Applied Materials and Natural Health
If you would invest 15,726 in Applied Materials on September 1, 2025 and sell it today you would earn a total of 9,499 from holding Applied Materials or generate 60.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Materials vs. Natural Health Farm
Performance |
| Timeline |
| Applied Materials |
| Natural Health Farm |
Applied Materials and Natural Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Materials and Natural Health
The main advantage of trading using opposite Applied Materials and Natural Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Materials position performs unexpectedly, Natural Health 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 Natural Health will offset losses from the drop in Natural Health's long position.| Applied Materials vs. Nobility Homes | Applied Materials vs. Smith Douglas Homes | Applied Materials vs. Monster Beverage Corp | Applied Materials vs. Suntory Beverage Food |
| Natural Health vs. Global Health | Natural Health vs. Definitive Healthcare Corp | Natural Health vs. Doximity | Natural Health vs. VSee Health, |
Check out your portfolio center.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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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