Correlation Between United Natural and MOVIE GAMES
Can any of the company-specific risk be diversified away by investing in both United Natural and MOVIE GAMES 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 MOVIE GAMES 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 MOVIE GAMES SA, you can compare the effects of market volatilities on United Natural and MOVIE GAMES 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 MOVIE GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and MOVIE GAMES.
Diversification Opportunities for United Natural and MOVIE GAMES
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and MOVIE is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and MOVIE GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOVIE GAMES SA 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 MOVIE GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOVIE GAMES SA has no effect on the direction of United Natural i.e., United Natural and MOVIE GAMES go up and down completely randomly.
Pair Corralation between United Natural and MOVIE GAMES
Assuming the 90 days horizon United Natural Foods is expected to generate 0.99 times more return on investment than MOVIE GAMES. However, United Natural Foods is 1.01 times less risky than MOVIE GAMES. It trades about 0.02 of its potential returns per unit of risk. MOVIE GAMES SA is currently generating about 0.0 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 | 99.74% |
| Values | Daily Returns |
United Natural Foods vs. MOVIE GAMES SA
Performance |
| Timeline |
| United Natural Foods |
| MOVIE GAMES SA |
United Natural and MOVIE GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and MOVIE GAMES
The main advantage of trading using opposite United Natural and MOVIE GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, MOVIE GAMES 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 MOVIE GAMES will offset losses from the drop in MOVIE GAMES'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 |
| MOVIE GAMES vs. Perseus Mining Limited | MOVIE GAMES vs. MCEWEN MINING INC | MOVIE GAMES vs. Zijin Mining Group | MOVIE GAMES vs. National Health Investors |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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