Correlation Between United Natural and Alta Global
Can any of the company-specific risk be diversified away by investing in both United Natural and Alta Global 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 Alta Global 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 Alta Global Group, you can compare the effects of market volatilities on United Natural and Alta Global 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 Alta Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and Alta Global.
Diversification Opportunities for United Natural and Alta Global
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Alta is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and Alta Global Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta Global Group 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 Alta Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta Global Group has no effect on the direction of United Natural i.e., United Natural and Alta Global go up and down completely randomly.
Pair Corralation between United Natural and Alta Global
Given the investment horizon of 90 days United Natural Foods is expected to generate 0.38 times more return on investment than Alta Global. However, United Natural Foods is 2.61 times less risky than Alta Global. It trades about 0.15 of its potential returns per unit of risk. Alta Global Group is currently generating about -0.2 per unit of risk. If you would invest 2,759 in United Natural Foods on December 2, 2024 and sell it today you would earn a total of 420.00 from holding United Natural Foods or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Natural Foods vs. Alta Global Group
Performance |
| Timeline |
| United Natural Foods |
| Alta Global Group |
United Natural and Alta Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Natural and Alta Global
The main advantage of trading using opposite United Natural and Alta Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, Alta Global 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 Alta Global will offset losses from the drop in Alta Global's long position.| United Natural vs. The Chefs Warehouse | ||
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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