Correlation Between Unifirst and Wilhelmina
Can any of the company-specific risk be diversified away by investing in both Unifirst and Wilhelmina 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 Wilhelmina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unifirst and Wilhelmina, you can compare the effects of market volatilities on Unifirst and Wilhelmina 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 Wilhelmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unifirst and Wilhelmina.
Diversification Opportunities for Unifirst and Wilhelmina
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Unifirst and Wilhelmina is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Unifirst and Wilhelmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilhelmina 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 Wilhelmina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilhelmina has no effect on the direction of Unifirst i.e., Unifirst and Wilhelmina go up and down completely randomly.
Pair Corralation between Unifirst and Wilhelmina
Considering the 90-day investment horizon Unifirst is expected to generate 3.26 times less return on investment than Wilhelmina. But when comparing it to its historical volatility, Unifirst is 2.41 times less risky than Wilhelmina. It trades about 0.02 of its potential returns per unit of risk. Wilhelmina is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 388.00 in Wilhelmina on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Wilhelmina or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Unifirst vs. Wilhelmina
Performance |
| Timeline |
| Unifirst |
| Wilhelmina |
Unifirst and Wilhelmina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unifirst and Wilhelmina
The main advantage of trading using opposite Unifirst and Wilhelmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unifirst position performs unexpectedly, Wilhelmina 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 Wilhelmina will offset losses from the drop in Wilhelmina's long position.| Unifirst vs. AZZ Incorporated | Unifirst vs. BrightView Holdings | Unifirst vs. Maximus | Unifirst vs. Network 1 Technologies |
| Wilhelmina vs. First Advantage Corp | Wilhelmina vs. Civeo Corp | Wilhelmina vs. Performant Financial | Wilhelmina vs. Network 1 Technologies |
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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