Correlation Between United Natural and Nanjing Panda
Can any of the company-specific risk be diversified away by investing in both United Natural and Nanjing Panda 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 Nanjing Panda 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 Nanjing Panda Electronics, you can compare the effects of market volatilities on United Natural and Nanjing Panda 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 Nanjing Panda. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and Nanjing Panda.
Diversification Opportunities for United Natural and Nanjing Panda
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and Nanjing is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and Nanjing Panda Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Panda Electronics 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 Nanjing Panda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Panda Electronics has no effect on the direction of United Natural i.e., United Natural and Nanjing Panda go up and down completely randomly.
Pair Corralation between United Natural and Nanjing Panda
If you would invest 33.00 in Nanjing Panda Electronics on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Nanjing Panda Electronics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 88.89% |
| Values | Daily Returns |
United Natural Foods vs. Nanjing Panda Electronics
Performance |
| Timeline |
| United Natural Foods |
| Nanjing Panda Electronics |
United Natural and Nanjing Panda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and Nanjing Panda
The main advantage of trading using opposite United Natural and Nanjing Panda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, Nanjing Panda 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 Nanjing Panda will offset losses from the drop in Nanjing Panda's long position.| United Natural vs. US Foods Holding | United Natural vs. Axfood AB | United Natural vs. Superior Plus Corp | United Natural vs. NMI Holdings |
| Nanjing Panda vs. Astral Foods Limited | Nanjing Panda vs. Performance Food Group | Nanjing Panda vs. Nomad Foods | Nanjing Panda vs. United Natural Foods |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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