Correlation Between United Natural and Altia Oyj
Can any of the company-specific risk be diversified away by investing in both United Natural and Altia Oyj 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 Altia Oyj 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 Altia Oyj, you can compare the effects of market volatilities on United Natural and Altia Oyj 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 Altia Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and Altia Oyj.
Diversification Opportunities for United Natural and Altia Oyj
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Altia is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and Altia Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altia Oyj 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 Altia Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altia Oyj has no effect on the direction of United Natural i.e., United Natural and Altia Oyj go up and down completely randomly.
Pair Corralation between United Natural and Altia Oyj
Assuming the 90 days horizon United Natural Foods is expected to generate 2.37 times more return on investment than Altia Oyj. However, United Natural is 2.37 times more volatile than Altia Oyj. It trades about 0.15 of its potential returns per unit of risk. Altia Oyj is currently generating about -0.19 per unit of risk. If you would invest 1,065 in United Natural Foods on August 29, 2024 and sell it today you would earn a total of 1,145 from holding United Natural Foods or generate 107.51% 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. Altia Oyj
Performance |
| Timeline |
| United Natural Foods |
| Altia Oyj |
United Natural and Altia Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and Altia Oyj
The main advantage of trading using opposite United Natural and Altia Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, Altia Oyj 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 Altia Oyj will offset losses from the drop in Altia Oyj's long position.| United Natural vs. DAIRY FARM INTL | United Natural vs. LION ONE METALS | United Natural vs. Sumitomo Mitsui Construction | United Natural vs. WIMFARM SA EO |
| Altia Oyj vs. LANSON BCC INH EO | Altia Oyj vs. VIRGIN WINES UK | Altia Oyj vs. Superior Plus Corp | Altia Oyj vs. NMI Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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