Correlation Between UFP Industries and PERSOL HOLDINGS
Can any of the company-specific risk be diversified away by investing in both UFP Industries and PERSOL HOLDINGS 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 UFP Industries and PERSOL HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UFP Industries and PERSOL HOLDINGS LTD, you can compare the effects of market volatilities on UFP Industries and PERSOL HOLDINGS 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 UFP Industries with a short position of PERSOL HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of UFP Industries and PERSOL HOLDINGS.
Diversification Opportunities for UFP Industries and PERSOL HOLDINGS
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UFP and PERSOL is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding UFP Industries and PERSOL HOLDINGS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PERSOL HOLDINGS LTD and UFP Industries 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 UFP Industries are associated (or correlated) with PERSOL HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PERSOL HOLDINGS LTD has no effect on the direction of UFP Industries i.e., UFP Industries and PERSOL HOLDINGS go up and down completely randomly.
Pair Corralation between UFP Industries and PERSOL HOLDINGS
Assuming the 90 days horizon UFP Industries is expected to generate 0.5 times more return on investment than PERSOL HOLDINGS. However, UFP Industries is 2.01 times less risky than PERSOL HOLDINGS. It trades about 0.05 of its potential returns per unit of risk. PERSOL HOLDINGS LTD is currently generating about 0.01 per unit of risk. If you would invest 9,922 in UFP Industries on August 26, 2024 and sell it today you would earn a total of 2,168 from holding UFP Industries or generate 21.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UFP Industries vs. PERSOL HOLDINGS LTD
Performance |
| Timeline |
| UFP Industries |
| PERSOL HOLDINGS LTD |
UFP Industries and PERSOL HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UFP Industries and PERSOL HOLDINGS
The main advantage of trading using opposite UFP Industries and PERSOL HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UFP Industries position performs unexpectedly, PERSOL HOLDINGS 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 PERSOL HOLDINGS will offset losses from the drop in PERSOL HOLDINGS's long position.| UFP Industries vs. United Natural Foods | UFP Industries vs. DOCDATA | UFP Industries vs. Datang International Power | UFP Industries vs. AUSNUTRIA DAIRY |
| PERSOL HOLDINGS vs. Recruit Holdings Co | PERSOL HOLDINGS vs. Randstad NV | PERSOL HOLDINGS vs. Meitec | PERSOL HOLDINGS vs. STHREE PLC LS |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |