Correlation Between United Natural and ARDAGH METAL
Can any of the company-specific risk be diversified away by investing in both United Natural and ARDAGH METAL 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 ARDAGH METAL 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 ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on United Natural and ARDAGH METAL 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 ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and ARDAGH METAL.
Diversification Opportunities for United Natural and ARDAGH METAL
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and ARDAGH is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and ARDAGH METAL PACDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARDAGH METAL PACDL 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 ARDAGH METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARDAGH METAL PACDL has no effect on the direction of United Natural i.e., United Natural and ARDAGH METAL go up and down completely randomly.
Pair Corralation between United Natural and ARDAGH METAL
Assuming the 90 days horizon United Natural Foods is expected to generate 1.07 times more return on investment than ARDAGH METAL. However, United Natural is 1.07 times more volatile than ARDAGH METAL PACDL 0001. It trades about 0.01 of its potential returns per unit of risk. ARDAGH METAL PACDL 0001 is currently generating about 0.0 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 (902.00) from holding United Natural Foods or give up 25.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Natural Foods vs. ARDAGH METAL PACDL 0001
Performance |
| Timeline |
| United Natural Foods |
| ARDAGH METAL PACDL |
United Natural and ARDAGH METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and ARDAGH METAL
The main advantage of trading using opposite United Natural and ARDAGH METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, ARDAGH METAL 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 ARDAGH METAL will offset losses from the drop in ARDAGH METAL's long position.| United Natural vs. US Foods Holding | United Natural vs. Axfood AB | United Natural vs. Superior Plus Corp | United Natural vs. NMI Holdings |
| ARDAGH METAL vs. Harmony Gold Mining | ARDAGH METAL vs. Cal Maine Foods | ARDAGH METAL vs. SENECA FOODS A | ARDAGH METAL vs. Eurasia Mining Plc |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |