Correlation Between United Natural and IHH Healthcare
Can any of the company-specific risk be diversified away by investing in both United Natural and IHH Healthcare 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 IHH Healthcare 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 IHH Healthcare Berhad, you can compare the effects of market volatilities on United Natural and IHH Healthcare 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 IHH Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and IHH Healthcare.
Diversification Opportunities for United Natural and IHH Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and IHH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and IHH Healthcare Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHH Healthcare Berhad 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 IHH Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHH Healthcare Berhad has no effect on the direction of United Natural i.e., United Natural and IHH Healthcare go up and down completely randomly.
Pair Corralation between United Natural and IHH Healthcare
If you would invest 2,859 in United Natural Foods on November 4, 2024 and sell it today you would earn a total of 115.00 from holding United Natural Foods or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
United Natural Foods vs. IHH Healthcare Berhad
Performance |
| Timeline |
| United Natural Foods |
| IHH Healthcare Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Natural and IHH Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and IHH Healthcare
The main advantage of trading using opposite United Natural and IHH Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, IHH Healthcare 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 IHH Healthcare will offset losses from the drop in IHH Healthcare'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 |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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