Correlation Between United Natural and Ballard Power
Can any of the company-specific risk be diversified away by investing in both United Natural and Ballard Power 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 Ballard Power 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 Ballard Power Systems, you can compare the effects of market volatilities on United Natural and Ballard Power 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 Ballard Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and Ballard Power.
Diversification Opportunities for United Natural and Ballard Power
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Ballard is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and Ballard Power Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ballard Power Systems 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 Ballard Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ballard Power Systems has no effect on the direction of United Natural i.e., United Natural and Ballard Power go up and down completely randomly.
Pair Corralation between United Natural and Ballard Power
Assuming the 90 days horizon United Natural Foods is expected to generate 0.97 times more return on investment than Ballard Power. However, United Natural Foods is 1.03 times less risky than Ballard Power. It trades about 0.06 of its potential returns per unit of risk. Ballard Power Systems is currently generating about -0.06 per unit of risk. If you would invest 1,328 in United Natural Foods on August 25, 2024 and sell it today you would earn a total of 795.00 from holding United Natural Foods or generate 59.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
United Natural Foods vs. Ballard Power Systems
Performance |
| Timeline |
| United Natural Foods |
| Ballard Power Systems |
United Natural and Ballard Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and Ballard Power
The main advantage of trading using opposite United Natural and Ballard Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, Ballard Power 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 Ballard Power will offset losses from the drop in Ballard Power's long position.| United Natural vs. Sysco | United Natural vs. Jernimo Martins SGPS | United Natural vs. Bunzl plc | United Natural vs. JERONIMO MARTINS UNADR2 |
| Ballard Power vs. Powercell Sweden | Ballard Power vs. Nel ASA | Ballard Power vs. ITM Power Plc | Ballard Power vs. Plug Power |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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