Correlation Between United Natural and Pampa Energa
Can any of the company-specific risk be diversified away by investing in both United Natural and Pampa Energa 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 Pampa Energa 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 Pampa Energa SA, you can compare the effects of market volatilities on United Natural and Pampa Energa 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 Pampa Energa. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and Pampa Energa.
Diversification Opportunities for United Natural and Pampa Energa
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between United and Pampa is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and Pampa Energa SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pampa Energa 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 Pampa Energa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pampa Energa SA has no effect on the direction of United Natural i.e., United Natural and Pampa Energa go up and down completely randomly.
Pair Corralation between United Natural and Pampa Energa
Assuming the 90 days horizon United Natural Foods is expected to under-perform the Pampa Energa. In addition to that, United Natural is 1.25 times more volatile than Pampa Energa SA. It trades about -0.01 of its total potential returns per unit of risk. Pampa Energa SA is currently generating about 0.09 per unit of volatility. If you would invest 2,600 in Pampa Energa SA on August 29, 2024 and sell it today you would earn a total of 5,450 from holding Pampa Energa SA or generate 209.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Natural Foods vs. Pampa Energa SA
Performance |
| Timeline |
| United Natural Foods |
| Pampa Energa SA |
United Natural and Pampa Energa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and Pampa Energa
The main advantage of trading using opposite United Natural and Pampa Energa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, Pampa Energa 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 Pampa Energa will offset losses from the drop in Pampa Energa's long position.| United Natural vs. Superior Plus Corp | United Natural vs. SIVERS SEMICONDUCTORS AB | United Natural vs. Talanx AG | United Natural vs. 2G ENERGY |
| Pampa Energa vs. Computer And Technologies | Pampa Energa vs. DXC Technology Co | Pampa Energa vs. KOOL2PLAY SA ZY | Pampa Energa vs. JD SPORTS FASH |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |