Correlation Between United Natural and Jeronimo Martins
Can any of the company-specific risk be diversified away by investing in both United Natural and Jeronimo Martins 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 Jeronimo Martins 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 Jeronimo Martins SGPS, you can compare the effects of market volatilities on United Natural and Jeronimo Martins 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 Jeronimo Martins. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and Jeronimo Martins.
Diversification Opportunities for United Natural and Jeronimo Martins
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Jeronimo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and Jeronimo Martins SGPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeronimo Martins SGPS 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 Jeronimo Martins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeronimo Martins SGPS has no effect on the direction of United Natural i.e., United Natural and Jeronimo Martins go up and down completely randomly.
Pair Corralation between United Natural and Jeronimo Martins
If you would invest 1,970 in United Natural Foods on September 3, 2024 and sell it today you would earn a total of 513.00 from holding United Natural Foods or generate 26.04% 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. Jeronimo Martins SGPS
Performance |
| Timeline |
| United Natural Foods |
| Jeronimo Martins SGPS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
United Natural and Jeronimo Martins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and Jeronimo Martins
The main advantage of trading using opposite United Natural and Jeronimo Martins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, Jeronimo Martins 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 Jeronimo Martins will offset losses from the drop in Jeronimo Martins' long position.| United Natural vs. The Chefs Warehouse | United Natural vs. Mission Produce | United Natural vs. The Andersons | United Natural vs. Performance Food Group |
| Jeronimo Martins vs. The Chefs Warehouse | Jeronimo Martins vs. Mission Produce | Jeronimo Martins vs. United Natural Foods | Jeronimo Martins vs. The Andersons |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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