Correlation Between United Natural and CDL INVESTMENT
Can any of the company-specific risk be diversified away by investing in both United Natural and CDL INVESTMENT 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 CDL INVESTMENT 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 CDL INVESTMENT, you can compare the effects of market volatilities on United Natural and CDL INVESTMENT 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 CDL INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and CDL INVESTMENT.
Diversification Opportunities for United Natural and CDL INVESTMENT
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and CDL is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and CDL INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDL INVESTMENT 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 CDL INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDL INVESTMENT has no effect on the direction of United Natural i.e., United Natural and CDL INVESTMENT go up and down completely randomly.
Pair Corralation between United Natural and CDL INVESTMENT
Assuming the 90 days horizon United Natural Foods is expected to generate 1.17 times more return on investment than CDL INVESTMENT. However, United Natural is 1.17 times more volatile than CDL INVESTMENT. It trades about 0.36 of its potential returns per unit of risk. CDL INVESTMENT is currently generating about 0.06 per unit of risk. If you would invest 1,820 in United Natural Foods on August 29, 2024 and sell it today you would earn a total of 390.00 from holding United Natural Foods or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Natural Foods vs. CDL INVESTMENT
Performance |
| Timeline |
| United Natural Foods |
| CDL INVESTMENT |
United Natural and CDL INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and CDL INVESTMENT
The main advantage of trading using opposite United Natural and CDL INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, CDL INVESTMENT 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 CDL INVESTMENT will offset losses from the drop in CDL INVESTMENT's long position.| United Natural vs. DAIRY FARM INTL | United Natural vs. LION ONE METALS | United Natural vs. Sumitomo Mitsui Construction | United Natural vs. WIMFARM SA EO |
| CDL INVESTMENT vs. Sabra Health Care | CDL INVESTMENT vs. Zijin Mining Group | CDL INVESTMENT vs. CVS Health | CDL INVESTMENT vs. EPSILON HEALTHCARE LTD |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |