Correlation Between United Natural and Bilibili
Can any of the company-specific risk be diversified away by investing in both United Natural and Bilibili 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 Bilibili 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 Bilibili, you can compare the effects of market volatilities on United Natural and Bilibili 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 Bilibili. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and Bilibili.
Diversification Opportunities for United Natural and Bilibili
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and Bilibili is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili 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 Bilibili. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilibili has no effect on the direction of United Natural i.e., United Natural and Bilibili go up and down completely randomly.
Pair Corralation between United Natural and Bilibili
Assuming the 90 days horizon United Natural Foods is expected to generate 0.6 times more return on investment than Bilibili. However, United Natural Foods is 1.68 times less risky than Bilibili. It trades about 0.39 of its potential returns per unit of risk. Bilibili is currently generating about -0.13 per unit of risk. If you would invest 1,852 in United Natural Foods on September 3, 2024 and sell it today you would earn a total of 438.00 from holding United Natural Foods or generate 23.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Natural Foods vs. Bilibili
Performance |
| Timeline |
| United Natural Foods |
| Bilibili |
United Natural and Bilibili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and Bilibili
The main advantage of trading using opposite United Natural and Bilibili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, Bilibili 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 Bilibili will offset losses from the drop in Bilibili's long position.| United Natural vs. Performance Food Group | United Natural vs. Superior Plus Corp | United Natural vs. NMI Holdings | United Natural vs. Origin Agritech |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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