Correlation Between United Natural and Keyera Corp
Can any of the company-specific risk be diversified away by investing in both United Natural and Keyera Corp 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 Keyera Corp 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 Keyera Corp, you can compare the effects of market volatilities on United Natural and Keyera Corp 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 Keyera Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and Keyera Corp.
Diversification Opportunities for United Natural and Keyera Corp
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between United and Keyera is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and Keyera Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyera Corp 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 Keyera Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyera Corp has no effect on the direction of United Natural i.e., United Natural and Keyera Corp go up and down completely randomly.
Pair Corralation between United Natural and Keyera Corp
Assuming the 90 days horizon United Natural Foods is expected to generate 1.38 times more return on investment than Keyera Corp. However, United Natural is 1.38 times more volatile than Keyera Corp. It trades about 0.37 of its potential returns per unit of risk. Keyera Corp is currently generating about 0.28 per unit of risk. If you would invest 1,820 in United Natural Foods on August 27, 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 Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Natural Foods vs. Keyera Corp
Performance |
| Timeline |
| United Natural Foods |
| Keyera Corp |
United Natural and Keyera Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and Keyera Corp
The main advantage of trading using opposite United Natural and Keyera Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, Keyera Corp 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 Keyera Corp will offset losses from the drop in Keyera Corp's long position.| United Natural vs. Lion One Metals | United Natural vs. LION ONE METALS | United Natural vs. GREENX METALS LTD | United Natural vs. Harmony Gold Mining |
| Keyera Corp vs. Charter Communications | Keyera Corp vs. HEMISPHERE EGY | Keyera Corp vs. KRISPY KREME DL 01 | Keyera Corp vs. FEMALE HEALTH |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |