Correlation Between OFFICE DEPOT and United Utilities
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and United Utilities 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 OFFICE DEPOT and United Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and United Utilities Group, you can compare the effects of market volatilities on OFFICE DEPOT and United Utilities 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 OFFICE DEPOT with a short position of United Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and United Utilities.
Diversification Opportunities for OFFICE DEPOT and United Utilities
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and United Utilities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Utilities and OFFICE DEPOT 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 OFFICE DEPOT are associated (or correlated) with United Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Utilities has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and United Utilities go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and United Utilities
If you would invest 1,920 in OFFICE DEPOT on October 23, 2024 and sell it today you would earn a total of 0.00 from holding OFFICE DEPOT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFFICE DEPOT vs. United Utilities Group
Performance |
| Timeline |
| OFFICE DEPOT |
| United Utilities |
OFFICE DEPOT and United Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and United Utilities
The main advantage of trading using opposite OFFICE DEPOT and United Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, United Utilities 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 Utilities will offset losses from the drop in United Utilities' long position.| OFFICE DEPOT vs. Apple Inc | OFFICE DEPOT vs. Apple Inc | OFFICE DEPOT vs. Apple Inc | OFFICE DEPOT vs. Apple Inc |
| United Utilities vs. The Home Depot | United Utilities vs. Beazer Homes USA | United Utilities vs. OFFICE DEPOT | United Utilities vs. Addus HomeCare |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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