Correlation Between Natures Sunshine and Bit Origin
Can any of the company-specific risk be diversified away by investing in both Natures Sunshine and Bit Origin 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 Natures Sunshine and Bit Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natures Sunshine Products and Bit Origin, you can compare the effects of market volatilities on Natures Sunshine and Bit Origin 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 Natures Sunshine with a short position of Bit Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natures Sunshine and Bit Origin.
Diversification Opportunities for Natures Sunshine and Bit Origin
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Natures and Bit is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Natures Sunshine Products and Bit Origin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Origin and Natures Sunshine 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 Natures Sunshine Products are associated (or correlated) with Bit Origin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bit Origin has no effect on the direction of Natures Sunshine i.e., Natures Sunshine and Bit Origin go up and down completely randomly.
Pair Corralation between Natures Sunshine and Bit Origin
Given the investment horizon of 90 days Natures Sunshine Products is expected to generate 0.33 times more return on investment than Bit Origin. However, Natures Sunshine Products is 3.05 times less risky than Bit Origin. It trades about 0.11 of its potential returns per unit of risk. Bit Origin is currently generating about -0.05 per unit of risk. If you would invest 1,249 in Natures Sunshine Products on March 24, 2025 and sell it today you would earn a total of 218.00 from holding Natures Sunshine Products or generate 17.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natures Sunshine Products vs. Bit Origin
Performance |
| Timeline |
| Natures Sunshine Products |
| Bit Origin |
Natures Sunshine and Bit Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natures Sunshine and Bit Origin
The main advantage of trading using opposite Natures Sunshine and Bit Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natures Sunshine position performs unexpectedly, Bit Origin 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 Bit Origin will offset losses from the drop in Bit Origin's long position.| Natures Sunshine vs. Seneca Foods Corp | Natures Sunshine vs. Central Garden Pet | Natures Sunshine vs. Central Garden Pet | Natures Sunshine vs. McCormick Company Incorporated |
| Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green Holdings | Bit Origin vs. Sharing Services Global |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |