Correlation Between Future Fund and Unifirst
Can any of the company-specific risk be diversified away by investing in both Future Fund and Unifirst 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 Future Fund and Unifirst into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Future Fund and Unifirst, you can compare the effects of market volatilities on Future Fund and Unifirst 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 Future Fund with a short position of Unifirst. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Fund and Unifirst.
Diversification Opportunities for Future Fund and Unifirst
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Future and Unifirst is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding The Future Fund and Unifirst in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unifirst and Future Fund 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 The Future Fund are associated (or correlated) with Unifirst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unifirst has no effect on the direction of Future Fund i.e., Future Fund and Unifirst go up and down completely randomly.
Pair Corralation between Future Fund and Unifirst
Given the investment horizon of 90 days Future Fund is expected to generate 4.09 times less return on investment than Unifirst. But when comparing it to its historical volatility, The Future Fund is 4.66 times less risky than Unifirst. It trades about 0.28 of its potential returns per unit of risk. Unifirst is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 17,109 in Unifirst on November 1, 2024 and sell it today you would earn a total of 4,424 from holding Unifirst or generate 25.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Future Fund vs. Unifirst
Performance |
| Timeline |
| Future Fund |
| Unifirst |
Future Fund and Unifirst Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Fund and Unifirst
The main advantage of trading using opposite Future Fund and Unifirst positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Fund position performs unexpectedly, Unifirst 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 Unifirst will offset losses from the drop in Unifirst's long position.| Future Fund vs. AdvisorShares Gerber Kawasaki | Future Fund vs. Goldman Sachs Future | Future Fund vs. QRAFT AI Enhanced Large | Future Fund vs. Tidal ETF Trust |
| Unifirst vs. AZZ Incorporated | Unifirst vs. BrightView Holdings | Unifirst vs. Maximus | Unifirst vs. Network 1 Technologies |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |