Correlation Between United Natural and KENEDIX OFFICE
Can any of the company-specific risk be diversified away by investing in both United Natural and KENEDIX OFFICE 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 KENEDIX OFFICE 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 KENEDIX OFFICE INV, you can compare the effects of market volatilities on United Natural and KENEDIX OFFICE 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 KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and KENEDIX OFFICE.
Diversification Opportunities for United Natural and KENEDIX OFFICE
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between United and KENEDIX is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and KENEDIX OFFICE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENEDIX OFFICE INV 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 KENEDIX OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENEDIX OFFICE INV has no effect on the direction of United Natural i.e., United Natural and KENEDIX OFFICE go up and down completely randomly.
Pair Corralation between United Natural and KENEDIX OFFICE
Assuming the 90 days horizon United Natural Foods is expected to generate 1.18 times more return on investment than KENEDIX OFFICE. However, United Natural is 1.18 times more volatile than KENEDIX OFFICE INV. It trades about 0.1 of its potential returns per unit of risk. KENEDIX OFFICE INV is currently generating about 0.03 per unit of risk. If you would invest 2,655 in United Natural Foods on October 16, 2024 and sell it today you would earn a total of 96.00 from holding United Natural Foods or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Natural Foods vs. KENEDIX OFFICE INV
Performance |
| Timeline |
| United Natural Foods |
| KENEDIX OFFICE INV |
United Natural and KENEDIX OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and KENEDIX OFFICE
The main advantage of trading using opposite United Natural and KENEDIX OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, KENEDIX OFFICE 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 KENEDIX OFFICE will offset losses from the drop in KENEDIX OFFICE's long position.| United Natural vs. Entravision Communications | United Natural vs. Highlight Communications AG | United Natural vs. CAREER EDUCATION | United Natural vs. INTERSHOP Communications Aktiengesellschaft |
| KENEDIX OFFICE vs. APPLIED MATERIALS | KENEDIX OFFICE vs. THRACE PLASTICS | KENEDIX OFFICE vs. Applied Materials | KENEDIX OFFICE vs. Vulcan Materials |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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