Correlation Between United Natural and Mapletree Industrial
Can any of the company-specific risk be diversified away by investing in both United Natural and Mapletree Industrial 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 Mapletree Industrial 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 Mapletree Industrial Trust, you can compare the effects of market volatilities on United Natural and Mapletree Industrial 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 Mapletree Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and Mapletree Industrial.
Diversification Opportunities for United Natural and Mapletree Industrial
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and Mapletree is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and Mapletree Industrial Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Industrial 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 Mapletree Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Industrial has no effect on the direction of United Natural i.e., United Natural and Mapletree Industrial go up and down completely randomly.
Pair Corralation between United Natural and Mapletree Industrial
Assuming the 90 days horizon United Natural Foods is expected to generate 2.27 times more return on investment than Mapletree Industrial. However, United Natural is 2.27 times more volatile than Mapletree Industrial Trust. It trades about 0.02 of its potential returns per unit of risk. Mapletree Industrial Trust is currently generating about 0.02 per unit of risk. If you would invest 2,168 in United Natural Foods on August 31, 2024 and sell it today you would earn a total of 122.00 from holding United Natural Foods or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.25% |
| Values | Daily Returns |
United Natural Foods vs. Mapletree Industrial Trust
Performance |
| Timeline |
| United Natural Foods |
| Mapletree Industrial |
United Natural and Mapletree Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and Mapletree Industrial
The main advantage of trading using opposite United Natural and Mapletree Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, Mapletree Industrial 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 Mapletree Industrial will offset losses from the drop in Mapletree Industrial's long position.| United Natural vs. Charter Communications | United Natural vs. Perseus Mining Limited | United Natural vs. Jacquet Metal Service | United Natural vs. SBA Communications Corp |
| Mapletree Industrial vs. Public Storage | Mapletree Industrial vs. Yara International ASA | Mapletree Industrial vs. Ascendas Real Estate | Mapletree Industrial vs. STAG Industrial |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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