Correlation Between US FOODS and FANDIFI TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both US FOODS and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P, you can compare the effects of market volatilities on US FOODS and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of US FOODS and FANDIFI TECHNOLOGY.
Diversification Opportunities for US FOODS and FANDIFI TECHNOLOGY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UFH and FANDIFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US FOODS HOLDING and FANDIFI TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FANDIFI TECHNOLOGY has no effect on the direction of US FOODS i.e., US FOODS and FANDIFI TECHNOLOGY go up and down completely randomly.
Pair Corralation between US FOODS and FANDIFI TECHNOLOGY
If you would invest 6,300 in US FOODS HOLDING on September 13, 2024 and sell it today you would earn a total of 400.00 from holding US FOODS HOLDING or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
US FOODS HOLDING vs. FANDIFI TECHNOLOGY P
Performance |
| Timeline |
| US FOODS HOLDING |
| FANDIFI TECHNOLOGY |
US FOODS and FANDIFI TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US FOODS and FANDIFI TECHNOLOGY
The main advantage of trading using opposite US FOODS and FANDIFI TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US FOODS position performs unexpectedly, FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY will offset losses from the drop in FANDIFI TECHNOLOGY's long position.| US FOODS vs. T MOBILE US | US FOODS vs. Gamma Communications plc | US FOODS vs. AOYAMA TRADING | US FOODS vs. Tower One Wireless |
| FANDIFI TECHNOLOGY vs. Salesforce | FANDIFI TECHNOLOGY vs. Superior Plus Corp | FANDIFI TECHNOLOGY vs. SIVERS SEMICONDUCTORS AB | FANDIFI TECHNOLOGY vs. Norsk Hydro ASA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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