Correlation Between PFSweb and Unifirst
Can any of the company-specific risk be diversified away by investing in both PFSweb 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 PFSweb and Unifirst into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PFSweb Inc and Unifirst, you can compare the effects of market volatilities on PFSweb 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 PFSweb with a short position of Unifirst. Check out your portfolio center. Please also check ongoing floating volatility patterns of PFSweb and Unifirst.
Diversification Opportunities for PFSweb and Unifirst
Modest diversification
The 3 months correlation between PFSweb and Unifirst is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding PFSweb Inc and Unifirst in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unifirst and PFSweb 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 PFSweb Inc 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 PFSweb i.e., PFSweb and Unifirst go up and down completely randomly.
Pair Corralation between PFSweb and Unifirst
If you would invest 18,400 in Unifirst on August 24, 2024 and sell it today you would earn a total of 1,623 from holding Unifirst or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
PFSweb Inc vs. Unifirst
Performance |
| Timeline |
| PFSweb Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Unifirst |
PFSweb and Unifirst Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PFSweb and Unifirst
The main advantage of trading using opposite PFSweb and Unifirst positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PFSweb 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.| PFSweb vs. Network 1 Technologies | PFSweb vs. Rentokil Initial PLC | PFSweb vs. Cass Information Systems | PFSweb vs. Maximus |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |