Correlation Between Axfood AB and US Foods
Can any of the company-specific risk be diversified away by investing in both Axfood AB 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 Axfood AB and US Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axfood AB and US Foods Holding, you can compare the effects of market volatilities on Axfood AB 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 Axfood AB with a short position of US Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axfood AB and US Foods.
Diversification Opportunities for Axfood AB and US Foods
Pay attention - limited upside
The 3 months correlation between Axfood and UFH is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Axfood AB 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 Axfood AB 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 Axfood AB 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 Axfood AB i.e., Axfood AB and US Foods go up and down completely randomly.
Pair Corralation between Axfood AB and US Foods
Assuming the 90 days trading horizon Axfood AB is expected to generate 1.56 times more return on investment than US Foods. However, Axfood AB is 1.56 times more volatile than US Foods Holding. It trades about 0.06 of its potential returns per unit of risk. US Foods Holding is currently generating about 0.09 per unit of risk. If you would invest 1,107 in Axfood AB on October 9, 2024 and sell it today you would earn a total of 914.00 from holding Axfood AB or generate 82.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axfood AB vs. US Foods Holding
Performance |
| Timeline |
| Axfood AB |
| US Foods Holding |
Axfood AB and US Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axfood AB and US Foods
The main advantage of trading using opposite Axfood AB and US Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axfood AB 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.| Axfood AB vs. US Foods Holding | Axfood AB vs. Superior Plus Corp | Axfood AB vs. NMI Holdings | Axfood AB vs. SIVERS SEMICONDUCTORS AB |
| US Foods vs. Astral Foods Limited | US Foods vs. CN MODERN DAIRY | US Foods vs. INDOFOOD AGRI RES | US Foods vs. CONAGRA FOODS |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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