Correlation Between Takkt AG and United Natural
Can any of the company-specific risk be diversified away by investing in both Takkt AG 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 Takkt AG and United Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Takkt AG and United Natural Foods, you can compare the effects of market volatilities on Takkt AG 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 Takkt AG with a short position of United Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Takkt AG and United Natural.
Diversification Opportunities for Takkt AG and United Natural
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Takkt and United is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Takkt AG 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 Takkt AG 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 Takkt AG 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 Takkt AG i.e., Takkt AG and United Natural go up and down completely randomly.
Pair Corralation between Takkt AG and United Natural
Assuming the 90 days trading horizon Takkt AG is expected to under-perform the United Natural. But the stock apears to be less risky and, when comparing its historical volatility, Takkt AG is 1.76 times less risky than United Natural. The stock trades about -0.43 of its potential returns per unit of risk. The United Natural Foods is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,820 in United Natural Foods on August 27, 2024 and sell it today you would earn a total of 390.00 from holding United Natural Foods or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Takkt AG vs. United Natural Foods
Performance |
| Timeline |
| Takkt AG |
| United Natural Foods |
Takkt AG and United Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Takkt AG and United Natural
The main advantage of trading using opposite Takkt AG and United Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Takkt AG 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.| Takkt AG vs. United Natural Foods | Takkt AG vs. AUSTEVOLL SEAFOOD | Takkt AG vs. Clean Energy Fuels | Takkt AG vs. Austevoll Seafood ASA |
| United Natural vs. Lion One Metals | United Natural vs. LION ONE METALS | United Natural vs. GREENX METALS LTD | United Natural vs. Harmony Gold Mining |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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