Correlation Between PATTIES FOODS and United Utilities
Can any of the company-specific risk be diversified away by investing in both PATTIES FOODS 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 PATTIES FOODS and United Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PATTIES FOODS and United Utilities Group, you can compare the effects of market volatilities on PATTIES FOODS 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 PATTIES FOODS with a short position of United Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of PATTIES FOODS and United Utilities.
Diversification Opportunities for PATTIES FOODS and United Utilities
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between PATTIES and United is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding PATTIES FOODS and United Utilities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Utilities and PATTIES FOODS 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 PATTIES FOODS 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 PATTIES FOODS i.e., PATTIES FOODS and United Utilities go up and down completely randomly.
Pair Corralation between PATTIES FOODS and United Utilities
Assuming the 90 days horizon PATTIES FOODS is expected to generate 0.93 times more return on investment than United Utilities. However, PATTIES FOODS is 1.07 times less risky than United Utilities. It trades about -0.06 of its potential returns per unit of risk. United Utilities Group is currently generating about -0.08 per unit of risk. If you would invest 29.00 in PATTIES FOODS on November 7, 2024 and sell it today you would lose (1.00) from holding PATTIES FOODS or give up 3.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
PATTIES FOODS vs. United Utilities Group
Performance |
| Timeline |
| PATTIES FOODS |
| United Utilities |
PATTIES FOODS and United Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PATTIES FOODS and United Utilities
The main advantage of trading using opposite PATTIES FOODS and United Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PATTIES FOODS 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.| PATTIES FOODS vs. Zoom Video Communications | PATTIES FOODS vs. GLG LIFE TECH | PATTIES FOODS vs. Bio Techne Corp | PATTIES FOODS vs. Arrow Electronics |
| United Utilities vs. GALENA MINING LTD | United Utilities vs. GRIFFIN MINING LTD | United Utilities vs. CHIBA BANK | United Utilities vs. Direct Line Insurance |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |