Correlation Between United Natural and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both United Natural and Austevoll Seafood 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 Austevoll Seafood 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 Austevoll Seafood ASA, you can compare the effects of market volatilities on United Natural and Austevoll Seafood 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 Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and Austevoll Seafood.
Diversification Opportunities for United Natural and Austevoll Seafood
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and Austevoll is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood 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 Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of United Natural i.e., United Natural and Austevoll Seafood go up and down completely randomly.
Pair Corralation between United Natural and Austevoll Seafood
Assuming the 90 days horizon United Natural Foods is expected to generate 1.39 times more return on investment than Austevoll Seafood. However, United Natural is 1.39 times more volatile than Austevoll Seafood ASA. It trades about 0.37 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.12 per unit of risk. If you would invest 1,820 in United Natural Foods on August 28, 2024 and sell it today you would earn a total of 390.00 from holding United Natural Foods or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Natural Foods vs. Austevoll Seafood ASA
Performance |
| Timeline |
| United Natural Foods |
| Austevoll Seafood ASA |
United Natural and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and Austevoll Seafood
The main advantage of trading using opposite United Natural and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, Austevoll Seafood 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 Austevoll Seafood will offset losses from the drop in Austevoll Seafood's long position.| United Natural vs. Jernimo Martins SGPS | United Natural vs. Axfood AB | United Natural vs. PF Bakkafrost | United Natural vs. Metro AG |
| Austevoll Seafood vs. Superior Plus Corp | Austevoll Seafood vs. NMI Holdings | Austevoll Seafood vs. Origin Agritech | Austevoll Seafood vs. SIVERS SEMICONDUCTORS AB |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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