AAPL vs Northwest Natural Holding Company (NWN)

When you send a fighter into the ring you want him to be taller and have more weight, like Apple. Then you want him to fight against a smaller guy, like NWN who weighs less and maybe is even less talented. Thus, we guarantee that we win the bet by stacking all odds into our favor.

Northwest Natural Holding Company (NWN)

For the past 12 months we see that APPL gained about 40% against the market, the red line and NWN lost about 50%, the blue line. Now NWN fits 80 times into the S&P and 12 months ago only around 40 times. It lost quite some money. A good short candidate.



Now lets look how AAPL/NWN looks like. Here we see that NWN lost about 3 times the value against AAPL as a result of AAPLs gain and NWNs loss. Great candidate. Gapping big time. Lets see what the BETA is saying.!!!

Now the BETA is 116%. This means we better short the S&P500 since the S&P is 100%. This stock is not good to short in a bullish market. It might be a candidate to long in a bearish market and to short a cyclical stock against it. We can clearly see that for a 6 point move on the X - Axis, S&P500, NWN on the Y - Axis moves almost 7 points!

Another limit switch is hit. ATR is bigger than 15%. This means that NWN at the moment is too volatile. Due to an ATR of 15.9% the risk is getting to great and the soft target is way too far out and probably NOT realistic. So two safety switches hit. 

This is a no go for now!