Correlation Between United Natural and CHKEZ Old
Can any of the company-specific risk be diversified away by investing in both United Natural and CHKEZ Old 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 CHKEZ Old 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 CHKEZ Old, you can compare the effects of market volatilities on United Natural and CHKEZ Old 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 CHKEZ Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and CHKEZ Old.
Diversification Opportunities for United Natural and CHKEZ Old
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and CHKEZ is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and CHKEZ Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHKEZ Old 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 CHKEZ Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHKEZ Old has no effect on the direction of United Natural i.e., United Natural and CHKEZ Old go up and down completely randomly.
Pair Corralation between United Natural and CHKEZ Old
If you would invest 2,759 in United Natural Foods on November 2, 2024 and sell it today you would earn a total of 287.00 from holding United Natural Foods or generate 10.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.26% |
| Values | Daily Returns |
United Natural Foods vs. CHKEZ Old
Performance |
| Timeline |
| United Natural Foods |
| CHKEZ Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Natural and CHKEZ Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and CHKEZ Old
The main advantage of trading using opposite United Natural and CHKEZ Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, CHKEZ Old 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 CHKEZ Old will offset losses from the drop in CHKEZ Old's long position.| United Natural vs. The Chefs Warehouse | United Natural vs. Mission Produce | United Natural vs. The Andersons | United Natural vs. Performance Food Group |
| CHKEZ Old vs. Qorvo Inc | CHKEZ Old vs. Arm Holdings plc | CHKEZ Old vs. Teradyne | CHKEZ Old vs. Vishay Intertechnology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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