Correlation Between JIAHUA STORES and United Natural
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES 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 JIAHUA STORES and United Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and United Natural Foods, you can compare the effects of market volatilities on JIAHUA STORES 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 JIAHUA STORES with a short position of United Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and United Natural.
Diversification Opportunities for JIAHUA STORES and United Natural
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES 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 JIAHUA STORES 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 JIAHUA STORES 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 JIAHUA STORES i.e., JIAHUA STORES and United Natural go up and down completely randomly.
Pair Corralation between JIAHUA STORES and United Natural
If you would invest 1,341 in United Natural Foods on September 2, 2024 and sell it today you would earn a total of 949.00 from holding United Natural Foods or generate 70.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.48% |
| Values | Daily Returns |
JIAHUA STORES vs. United Natural Foods
Performance |
| Timeline |
| JIAHUA STORES |
| United Natural Foods |
JIAHUA STORES and United Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and United Natural
The main advantage of trading using opposite JIAHUA STORES and United Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES 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.| JIAHUA STORES vs. SIVERS SEMICONDUCTORS AB | JIAHUA STORES vs. Darden Restaurants | JIAHUA STORES vs. Reliance Steel Aluminum | JIAHUA STORES vs. Q2M Managementberatung AG |
| United Natural vs. STRAYER EDUCATION | United Natural vs. PSI Software AG | United Natural vs. Strategic Education | United Natural vs. ATOSS SOFTWARE |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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