Correlation Between US FOODS and OFFICE DEPOT
Can any of the company-specific risk be diversified away by investing in both US FOODS and OFFICE DEPOT 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 US FOODS and OFFICE DEPOT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US FOODS HOLDING and OFFICE DEPOT, you can compare the effects of market volatilities on US FOODS and OFFICE DEPOT 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 US FOODS with a short position of OFFICE DEPOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of US FOODS and OFFICE DEPOT.
Diversification Opportunities for US FOODS and OFFICE DEPOT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UFH and OFFICE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US FOODS HOLDING and OFFICE DEPOT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFFICE DEPOT and US 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 US FOODS HOLDING are associated (or correlated) with OFFICE DEPOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFFICE DEPOT has no effect on the direction of US FOODS i.e., US FOODS and OFFICE DEPOT go up and down completely randomly.
Pair Corralation between US FOODS and OFFICE DEPOT
If you would invest 6,450 in US FOODS HOLDING on November 6, 2024 and sell it today you would earn a total of 400.00 from holding US FOODS HOLDING or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
US FOODS HOLDING vs. OFFICE DEPOT
Performance |
| Timeline |
| US FOODS HOLDING |
| OFFICE DEPOT |
US FOODS and OFFICE DEPOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US FOODS and OFFICE DEPOT
The main advantage of trading using opposite US FOODS and OFFICE DEPOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US FOODS position performs unexpectedly, OFFICE DEPOT 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 OFFICE DEPOT will offset losses from the drop in OFFICE DEPOT's long position.| US FOODS vs. Amkor Technology | US FOODS vs. VELA TECHNOLPLC LS 0001 | US FOODS vs. TAL Education Group | US FOODS vs. G8 EDUCATION |
| OFFICE DEPOT vs. X FAB Silicon Foundries | OFFICE DEPOT vs. EITZEN CHEMICALS | OFFICE DEPOT vs. KINGBOARD CHEMICAL | OFFICE DEPOT vs. Zijin Mining 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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