Correlation Between Signal Advance and Natures Sunshine
Can any of the company-specific risk be diversified away by investing in both Signal Advance and Natures Sunshine 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 Signal Advance and Natures Sunshine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Signal Advance and Natures Sunshine Products, you can compare the effects of market volatilities on Signal Advance and Natures Sunshine 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 Signal Advance with a short position of Natures Sunshine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Signal Advance and Natures Sunshine.
Diversification Opportunities for Signal Advance and Natures Sunshine
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Signal and Natures is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Signal Advance and Natures Sunshine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natures Sunshine Products and Signal Advance 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 Signal Advance are associated (or correlated) with Natures Sunshine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natures Sunshine Products has no effect on the direction of Signal Advance i.e., Signal Advance and Natures Sunshine go up and down completely randomly.
Pair Corralation between Signal Advance and Natures Sunshine
Given the investment horizon of 90 days Signal Advance is expected to generate 4.55 times more return on investment than Natures Sunshine. However, Signal Advance is 4.55 times more volatile than Natures Sunshine Products. It trades about 0.07 of its potential returns per unit of risk. Natures Sunshine Products is currently generating about -0.02 per unit of risk. If you would invest 19.00 in Signal Advance on July 20, 2025 and sell it today you would earn a total of 3.00 from holding Signal Advance or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Signal Advance vs. Natures Sunshine Products
Performance |
| Timeline |
| Signal Advance |
| Natures Sunshine Products |
Signal Advance and Natures Sunshine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Signal Advance and Natures Sunshine
The main advantage of trading using opposite Signal Advance and Natures Sunshine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Signal Advance position performs unexpectedly, Natures Sunshine 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 Natures Sunshine will offset losses from the drop in Natures Sunshine's long position.| Signal Advance vs. Lifeloc Technologies | Signal Advance vs. Scientific Industries | Signal Advance vs. Paragon Technologies | Signal Advance vs. Edgewater Wireless Systems |
| Natures Sunshine vs. Above Food Ingredients | Natures Sunshine vs. BRC Inc | Natures Sunshine vs. FitLife Brands, Common | Natures Sunshine vs. Alico Inc |
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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