Correlation Between Unifirst and SP Plus
Can any of the company-specific risk be diversified away by investing in both Unifirst and SP Plus 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 SP Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unifirst and SP Plus Corp, you can compare the effects of market volatilities on Unifirst and SP Plus 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 SP Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unifirst and SP Plus.
Diversification Opportunities for Unifirst and SP Plus
Very weak diversification
The 3 months correlation between Unifirst and SP Plus is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Unifirst and SP Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Plus Corp 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 SP Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Plus Corp has no effect on the direction of Unifirst i.e., Unifirst and SP Plus go up and down completely randomly.
Pair Corralation between Unifirst and SP Plus
If you would invest 16,844 in Unifirst on August 28, 2024 and sell it today you would earn a total of 3,614 from holding Unifirst or generate 21.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.48% |
| Values | Daily Returns |
Unifirst vs. SP Plus Corp
Performance |
| Timeline |
| Unifirst |
| SP Plus Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Unifirst and SP Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unifirst and SP Plus
The main advantage of trading using opposite Unifirst and SP Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unifirst position performs unexpectedly, SP Plus 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 SP Plus will offset losses from the drop in SP Plus' long position.| Unifirst vs. Park Electrochemical | Unifirst vs. Innovative Solutions and | Unifirst vs. Curtiss Wright | Unifirst vs. National Presto Industries |
| SP Plus vs. Cass Information Systems | SP Plus vs. First Advantage Corp | SP Plus vs. Rentokil Initial PLC | SP Plus vs. CBIZ Inc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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