Correlation Between United Natural and DMG Mori
Can any of the company-specific risk be diversified away by investing in both United Natural and DMG Mori 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 United Natural and DMG Mori into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Natural Foods and DMG Mori Co, you can compare the effects of market volatilities on United Natural and DMG Mori 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 United Natural with a short position of DMG Mori. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and DMG Mori.
Diversification Opportunities for United Natural and DMG Mori
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and DMG is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and DMG Mori Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DMG Mori and United Natural 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 United Natural Foods are associated (or correlated) with DMG Mori. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DMG Mori has no effect on the direction of United Natural i.e., United Natural and DMG Mori go up and down completely randomly.
Pair Corralation between United Natural and DMG Mori
Assuming the 90 days horizon United Natural Foods is expected to generate 1.35 times more return on investment than DMG Mori. However, United Natural is 1.35 times more volatile than DMG Mori Co. It trades about 0.02 of its potential returns per unit of risk. DMG Mori Co is currently generating about 0.01 per unit of risk. If you would invest 2,168 in United Natural Foods on August 31, 2024 and sell it today you would earn a total of 122.00 from holding United Natural Foods or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Natural Foods vs. DMG Mori Co
Performance |
| Timeline |
| United Natural Foods |
| DMG Mori |
United Natural and DMG Mori Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and DMG Mori
The main advantage of trading using opposite United Natural and DMG Mori positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, DMG Mori 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 DMG Mori will offset losses from the drop in DMG Mori's long position.| United Natural vs. Charter Communications | United Natural vs. Perseus Mining Limited | United Natural vs. Jacquet Metal Service | United Natural vs. SBA Communications Corp |
| DMG Mori vs. Hyster Yale Materials Handling | DMG Mori vs. NEWELL RUBBERMAID | DMG Mori vs. Eagle Materials | DMG Mori vs. APPLIED MATERIALS |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |