Correlation Between Unifirst and Maximus
Can any of the company-specific risk be diversified away by investing in both Unifirst and Maximus 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 Unifirst and Maximus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unifirst and Maximus, you can compare the effects of market volatilities on Unifirst and Maximus 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 Unifirst with a short position of Maximus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unifirst and Maximus.
Diversification Opportunities for Unifirst and Maximus
Significant diversification
The 3 months correlation between Unifirst and Maximus is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Unifirst and Maximus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maximus and Unifirst 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 Unifirst are associated (or correlated) with Maximus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maximus has no effect on the direction of Unifirst i.e., Unifirst and Maximus go up and down completely randomly.
Pair Corralation between Unifirst and Maximus
Considering the 90-day investment horizon Unifirst is expected to generate 0.95 times more return on investment than Maximus. However, Unifirst is 1.05 times less risky than Maximus. It trades about 0.11 of its potential returns per unit of risk. Maximus is currently generating about -0.23 per unit of risk. If you would invest 21,448 in Unifirst on November 9, 2024 and sell it today you would earn a total of 896.00 from holding Unifirst or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unifirst vs. Maximus
Performance |
| Timeline |
| Unifirst |
| Maximus |
Unifirst and Maximus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unifirst and Maximus
The main advantage of trading using opposite Unifirst and Maximus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unifirst position performs unexpectedly, Maximus 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 Maximus will offset losses from the drop in Maximus' long position.| Unifirst vs. AZZ Incorporated | Unifirst vs. BrightView Holdings | Unifirst vs. Maximus | Unifirst vs. Network 1 Technologies |
| Maximus vs. Network 1 Technologies | Maximus vs. First Advantage Corp | Maximus vs. BrightView Holdings | Maximus vs. Civeo Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |