Correlation Between CAL-MAINE FOODS and UNIPHAR PLC
Can any of the company-specific risk be diversified away by investing in both CAL-MAINE FOODS and UNIPHAR PLC 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 CAL-MAINE FOODS and UNIPHAR PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAL MAINE FOODS and UNIPHAR PLC EO, you can compare the effects of market volatilities on CAL-MAINE FOODS and UNIPHAR PLC 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 CAL-MAINE FOODS with a short position of UNIPHAR PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAL-MAINE FOODS and UNIPHAR PLC.
Diversification Opportunities for CAL-MAINE FOODS and UNIPHAR PLC
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CAL-MAINE and UNIPHAR is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding CAL MAINE FOODS and UNIPHAR PLC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIPHAR PLC EO and CAL-MAINE FOODS 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 CAL MAINE FOODS are associated (or correlated) with UNIPHAR PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIPHAR PLC EO has no effect on the direction of CAL-MAINE FOODS i.e., CAL-MAINE FOODS and UNIPHAR PLC go up and down completely randomly.
Pair Corralation between CAL-MAINE FOODS and UNIPHAR PLC
Assuming the 90 days trading horizon CAL MAINE FOODS is expected to under-perform the UNIPHAR PLC. But the stock apears to be less risky and, when comparing its historical volatility, CAL MAINE FOODS is 1.08 times less risky than UNIPHAR PLC. The stock trades about -0.06 of its potential returns per unit of risk. The UNIPHAR PLC EO is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 189.00 in UNIPHAR PLC EO on January 14, 2025 and sell it today you would earn a total of 63.00 from holding UNIPHAR PLC EO or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CAL MAINE FOODS vs. UNIPHAR PLC EO
Performance |
| Timeline |
| CAL MAINE FOODS |
| UNIPHAR PLC EO |
CAL-MAINE FOODS and UNIPHAR PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAL-MAINE FOODS and UNIPHAR PLC
The main advantage of trading using opposite CAL-MAINE FOODS and UNIPHAR PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAL-MAINE FOODS position performs unexpectedly, UNIPHAR PLC 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 UNIPHAR PLC will offset losses from the drop in UNIPHAR PLC's long position.| CAL-MAINE FOODS vs. Apple Inc | CAL-MAINE FOODS vs. Apple Inc | CAL-MAINE FOODS vs. Apple Inc | CAL-MAINE FOODS vs. Apple Inc |
| UNIPHAR PLC vs. CHIBA BANK | UNIPHAR PLC vs. ZURICH INSURANCE GROUP | UNIPHAR PLC vs. Direct Line Insurance | UNIPHAR PLC vs. Selective Insurance Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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