Correlation Between SkyCity Entertainment and United Natural
Can any of the company-specific risk be diversified away by investing in both SkyCity Entertainment and United Natural 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 SkyCity Entertainment and United Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SkyCity Entertainment Group and United Natural Foods, you can compare the effects of market volatilities on SkyCity Entertainment and United Natural 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 SkyCity Entertainment with a short position of United Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of SkyCity Entertainment and United Natural.
Diversification Opportunities for SkyCity Entertainment and United Natural
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SkyCity and United is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding SkyCity Entertainment Group and United Natural Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Natural Foods and SkyCity Entertainment 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 SkyCity Entertainment Group are associated (or correlated) with United Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Natural Foods has no effect on the direction of SkyCity Entertainment i.e., SkyCity Entertainment and United Natural go up and down completely randomly.
Pair Corralation between SkyCity Entertainment and United Natural
Assuming the 90 days horizon SkyCity Entertainment Group is expected to under-perform the United Natural. But the pink sheet apears to be less risky and, when comparing its historical volatility, SkyCity Entertainment Group is 1.52 times less risky than United Natural. The pink sheet trades about -0.12 of its potential returns per unit of risk. The United Natural Foods is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,448 in United Natural Foods on October 22, 2024 and sell it today you would earn a total of 1,410 from holding United Natural Foods or generate 97.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
SkyCity Entertainment Group vs. United Natural Foods
Performance |
| Timeline |
| SkyCity Entertainment |
| United Natural Foods |
SkyCity Entertainment and United Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SkyCity Entertainment and United Natural
The main advantage of trading using opposite SkyCity Entertainment and United Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SkyCity Entertainment position performs unexpectedly, United Natural 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 Natural will offset losses from the drop in United Natural's long position.| SkyCity Entertainment vs. Nagacorp | SkyCity Entertainment vs. Wynn Macau | SkyCity Entertainment vs. MGM China Holdings | SkyCity Entertainment vs. Table Trac |
| United Natural vs. The Chefs Warehouse | United Natural vs. Mission Produce | United Natural vs. The Andersons | United Natural vs. Performance Food Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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