Correlation Between United Natural and Safran SA
Can any of the company-specific risk be diversified away by investing in both United Natural and Safran SA 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 Safran SA 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 Safran SA, you can compare the effects of market volatilities on United Natural and Safran SA 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 Safran SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and Safran SA.
Diversification Opportunities for United Natural and Safran SA
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and Safran is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and Safran SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safran SA 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 Safran SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safran SA has no effect on the direction of United Natural i.e., United Natural and Safran SA go up and down completely randomly.
Pair Corralation between United Natural and Safran SA
Assuming the 90 days horizon United Natural Foods is expected to under-perform the Safran SA. In addition to that, United Natural is 2.91 times more volatile than Safran SA. It trades about -0.02 of its total potential returns per unit of risk. Safran SA is currently generating about 0.1 per unit of volatility. If you would invest 11,444 in Safran SA on August 25, 2024 and sell it today you would earn a total of 10,466 from holding Safran SA or generate 91.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Natural Foods vs. Safran SA
Performance |
| Timeline |
| United Natural Foods |
| Safran SA |
United Natural and Safran SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and Safran SA
The main advantage of trading using opposite United Natural and Safran SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, Safran SA 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 Safran SA will offset losses from the drop in Safran SA's long position.| United Natural vs. Sysco | United Natural vs. Jernimo Martins SGPS | United Natural vs. JERONIMO MARTINS UNADR2 | United Natural vs. Performance Food Group |
| Safran SA vs. GRIFFIN MINING LTD | Safran SA vs. Coeur Mining | Safran SA vs. ECHO INVESTMENT ZY | Safran SA vs. Geely Automobile Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |