Correlation Between Superior Plus and US Foods
Can any of the company-specific risk be diversified away by investing in both Superior Plus and US Foods 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 Superior Plus and US Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and US Foods Holding, you can compare the effects of market volatilities on Superior Plus and US Foods 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 Superior Plus with a short position of US Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and US Foods.
Diversification Opportunities for Superior Plus and US Foods
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Superior and UFH is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and US Foods Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Foods Holding and Superior Plus 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 Superior Plus Corp are associated (or correlated) with US Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Foods Holding has no effect on the direction of Superior Plus i.e., Superior Plus and US Foods go up and down completely randomly.
Pair Corralation between Superior Plus and US Foods
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the US Foods. In addition to that, Superior Plus is 1.47 times more volatile than US Foods Holding. It trades about -0.04 of its total potential returns per unit of risk. US Foods Holding is currently generating about 0.13 per unit of volatility. If you would invest 4,140 in US Foods Holding on September 3, 2024 and sell it today you would earn a total of 2,560 from holding US Foods Holding or generate 61.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. US Foods Holding
Performance |
| Timeline |
| Superior Plus Corp |
| US Foods Holding |
Superior Plus and US Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and US Foods
The main advantage of trading using opposite Superior Plus and US Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, US Foods 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 US Foods will offset losses from the drop in US Foods' long position.| Superior Plus vs. Collins Foods Limited | Superior Plus vs. Thai Beverage Public | Superior Plus vs. ADRIATIC METALS LS 013355 | Superior Plus vs. Lifeway Foods |
| US Foods vs. Performance Food Group | US Foods vs. Superior Plus Corp | US Foods vs. NMI Holdings | US Foods vs. Origin Agritech |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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