Correlation Between PFMT Old and Unifirst
Can any of the company-specific risk be diversified away by investing in both PFMT Old 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 PFMT Old and Unifirst into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PFMT Old and Unifirst, you can compare the effects of market volatilities on PFMT Old 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 PFMT Old with a short position of Unifirst. Check out your portfolio center. Please also check ongoing floating volatility patterns of PFMT Old and Unifirst.
Diversification Opportunities for PFMT Old and Unifirst
Average diversification
The 3 months correlation between PFMT and Unifirst is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding PFMT Old and Unifirst in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unifirst and PFMT Old 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 PFMT Old 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 PFMT Old i.e., PFMT Old and Unifirst go up and down completely randomly.
Pair Corralation between PFMT Old and Unifirst
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 | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
PFMT Old vs. Unifirst
Performance |
| Timeline |
| PFMT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Unifirst |
PFMT Old and Unifirst Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PFMT Old and Unifirst
The main advantage of trading using opposite PFMT Old and Unifirst positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PFMT Old 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.| PFMT Old vs. Network 1 Technologies | PFMT Old vs. Rentokil Initial PLC | PFMT Old vs. Mader Group Limited | PFMT Old vs. First Advantage Corp |
| 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.
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