Correlation Between United Natural and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both United Natural and JIAHUA STORES 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 JIAHUA STORES 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 JIAHUA STORES, you can compare the effects of market volatilities on United Natural and JIAHUA STORES 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 JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and JIAHUA STORES.
Diversification Opportunities for United Natural and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES 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 JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of United Natural i.e., United Natural and JIAHUA STORES go up and down completely randomly.
Pair Corralation between United Natural and JIAHUA STORES
If you would invest 1,341 in United Natural Foods on September 2, 2024 and sell it today you would earn a total of 949.00 from holding United Natural Foods or generate 70.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.48% |
| Values | Daily Returns |
United Natural Foods vs. JIAHUA STORES
Performance |
| Timeline |
| United Natural Foods |
| JIAHUA STORES |
United Natural and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and JIAHUA STORES
The main advantage of trading using opposite United Natural and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.| United Natural vs. STRAYER EDUCATION | United Natural vs. PSI Software AG | United Natural vs. Strategic Education | United Natural vs. ATOSS SOFTWARE |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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