Correlation Between United Natural and Immofinanz
Can any of the company-specific risk be diversified away by investing in both United Natural and Immofinanz 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 Immofinanz 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 Immofinanz AG, you can compare the effects of market volatilities on United Natural and Immofinanz 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 Immofinanz. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and Immofinanz.
Diversification Opportunities for United Natural and Immofinanz
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Immofinanz is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and Immofinanz AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immofinanz AG 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 Immofinanz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immofinanz AG has no effect on the direction of United Natural i.e., United Natural and Immofinanz go up and down completely randomly.
Pair Corralation between United Natural and Immofinanz
Assuming the 90 days horizon United Natural Foods is expected to generate 1.65 times more return on investment than Immofinanz. However, United Natural is 1.65 times more volatile than Immofinanz AG. It trades about 0.34 of its potential returns per unit of risk. Immofinanz AG is currently generating about 0.15 per unit of risk. If you would invest 1,888 in United Natural Foods on September 1, 2024 and sell it today you would earn a total of 402.00 from holding United Natural Foods or generate 21.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Natural Foods vs. Immofinanz AG
Performance |
| Timeline |
| United Natural Foods |
| Immofinanz AG |
United Natural and Immofinanz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and Immofinanz
The main advantage of trading using opposite United Natural and Immofinanz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, Immofinanz 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 Immofinanz will offset losses from the drop in Immofinanz's long position.| United Natural vs. Sysco | United Natural vs. Jernimo Martins SGPS | United Natural vs. Performance Food Group | United Natural vs. US Foods Holding |
| Immofinanz vs. OPEN HOUSE GROUP | Immofinanz vs. Superior Plus Corp | Immofinanz vs. NMI Holdings | Immofinanz vs. Origin Agritech |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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