Correlation Between United Natural and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both United Natural and Corsair Gaming 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 Corsair Gaming 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 Corsair Gaming, you can compare the effects of market volatilities on United Natural and Corsair Gaming 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 Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and Corsair Gaming.
Diversification Opportunities for United Natural and Corsair Gaming
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and Corsair is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming 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 Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of United Natural i.e., United Natural and Corsair Gaming go up and down completely randomly.
Pair Corralation between United Natural and Corsair Gaming
Assuming the 90 days horizon United Natural Foods is expected to generate 1.34 times more return on investment than Corsair Gaming. However, United Natural is 1.34 times more volatile than Corsair Gaming. It trades about 0.01 of its potential returns per unit of risk. Corsair Gaming is currently generating about -0.03 per unit of risk. If you would invest 3,551 in United Natural Foods on October 11, 2024 and sell it today you would lose (836.00) from holding United Natural Foods or give up 23.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Natural Foods vs. Corsair Gaming
Performance |
| Timeline |
| United Natural Foods |
| Corsair Gaming |
United Natural and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and Corsair Gaming
The main advantage of trading using opposite United Natural and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.| United Natural vs. Austevoll Seafood ASA | United Natural vs. THAI BEVERAGE | United Natural vs. Endeavour Mining PLC | United Natural vs. SENECA FOODS A |
| Corsair Gaming vs. United Natural Foods | Corsair Gaming vs. Tyson Foods | Corsair Gaming vs. Nomad Foods | Corsair Gaming vs. The Hanover Insurance |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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| Fundamental Analysis View fundamental data based on most recent published financial statements |