Correlation Between Bet-at-home and United Natural
Can any of the company-specific risk be diversified away by investing in both Bet-at-home and United Natural 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 Bet-at-home and United Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bet at home AG and United Natural Foods, you can compare the effects of market volatilities on Bet-at-home and United Natural 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 Bet-at-home with a short position of United Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet-at-home and United Natural.
Diversification Opportunities for Bet-at-home and United Natural
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bet-at-home and United is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and United Natural Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Natural Foods and Bet-at-home 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 bet at home AG are associated (or correlated) with United Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Natural Foods has no effect on the direction of Bet-at-home i.e., Bet-at-home and United Natural go up and down completely randomly.
Pair Corralation between Bet-at-home and United Natural
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the United Natural. But the stock apears to be less risky and, when comparing its historical volatility, bet at home AG is 1.27 times less risky than United Natural. The stock trades about -0.02 of its potential returns per unit of risk. The United Natural Foods is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,820 in United Natural Foods on September 12, 2024 and sell it today you would earn a total of 422.00 from holding United Natural Foods or generate 23.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
bet at home AG vs. United Natural Foods
Performance |
| Timeline |
| bet at home |
| United Natural Foods |
Bet-at-home and United Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet-at-home and United Natural
The main advantage of trading using opposite Bet-at-home and United Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet-at-home position performs unexpectedly, United Natural 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 United Natural will offset losses from the drop in United Natural's long position.| Bet-at-home vs. Apple Inc | Bet-at-home vs. Apple Inc | Bet-at-home vs. Apple Inc | Bet-at-home vs. Apple Inc |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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