Correlation Between United Natural and Intel
Can any of the company-specific risk be diversified away by investing in both United Natural and Intel 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 Intel 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 Intel, you can compare the effects of market volatilities on United Natural and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and Intel.
Diversification Opportunities for United Natural and Intel
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and Intel is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of United Natural i.e., United Natural and Intel go up and down completely randomly.
Pair Corralation between United Natural and Intel
Assuming the 90 days horizon United Natural Foods is expected to generate 1.69 times more return on investment than Intel. However, United Natural is 1.69 times more volatile than Intel. It trades about 0.24 of its potential returns per unit of risk. Intel is currently generating about 0.06 per unit of risk. If you would invest 1,292 in United Natural Foods on September 12, 2024 and sell it today you would earn a total of 1,540 from holding United Natural Foods or generate 119.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
United Natural Foods vs. Intel
Performance |
| Timeline |
| United Natural Foods |
| Intel |
United Natural and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and Intel
The main advantage of trading using opposite United Natural and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| United Natural vs. Metro AG | United Natural vs. Superior Plus Corp | United Natural vs. SIVERS SEMICONDUCTORS AB | United Natural vs. NorAm Drilling AS |
| Intel vs. NXP Semiconductors NV | Intel vs. Gamma Communications plc | Intel vs. Iridium Communications | Intel vs. MagnaChip Semiconductor Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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