Correlation Between United Natural and Yara International
Can any of the company-specific risk be diversified away by investing in both United Natural and Yara International 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 Yara International 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 Yara International ASA, you can compare the effects of market volatilities on United Natural and Yara International 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 Yara International. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and Yara International.
Diversification Opportunities for United Natural and Yara International
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Yara is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and Yara International ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yara International ASA 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 Yara International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yara International ASA has no effect on the direction of United Natural i.e., United Natural and Yara International go up and down completely randomly.
Pair Corralation between United Natural and Yara International
Assuming the 90 days horizon United Natural Foods is expected to generate 1.07 times more return on investment than Yara International. However, United Natural is 1.07 times more volatile than Yara International ASA. It trades about 0.16 of its potential returns per unit of risk. Yara International ASA is currently generating about -0.21 per unit of risk. If you would invest 1,873 in United Natural Foods on August 24, 2024 and sell it today you would earn a total of 150.00 from holding United Natural Foods or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
United Natural Foods vs. Yara International ASA
Performance |
| Timeline |
| United Natural Foods |
| Yara International ASA |
United Natural and Yara International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and Yara International
The main advantage of trading using opposite United Natural and Yara International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, Yara International 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 Yara International will offset losses from the drop in Yara International's long position.| United Natural vs. AEON STORES | United Natural vs. National Retail Properties | United Natural vs. CosmoSteel Holdings Limited | United Natural vs. Insteel Industries |
| Yara International vs. Public Storage | Yara International vs. SEGRO Plc | Yara International vs. EastGroup Properties | Yara International vs. NIPPON PROLOGIS REIT |
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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