Correlation Between US Foods and Atacado SA
Can any of the company-specific risk be diversified away by investing in both US Foods and Atacado SA 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 US Foods and Atacado SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Foods Holding and Atacado SA, you can compare the effects of market volatilities on US Foods and Atacado SA 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 US Foods with a short position of Atacado SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Foods and Atacado SA.
Diversification Opportunities for US Foods and Atacado SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between USFD and Atacado is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US Foods Holding and Atacado SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atacado SA and US Foods 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 US Foods Holding are associated (or correlated) with Atacado SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atacado SA has no effect on the direction of US Foods i.e., US Foods and Atacado SA go up and down completely randomly.
Pair Corralation between US Foods and Atacado SA
If you would invest 3,773 in US Foods Holding on January 10, 2025 and sell it today you would earn a total of 2,704 from holding US Foods Holding or generate 71.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
US Foods Holding vs. Atacado SA
Performance |
| Timeline |
| US Foods Holding |
| Atacado SA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
US Foods and Atacado SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Foods and Atacado SA
The main advantage of trading using opposite US Foods and Atacado SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Foods position performs unexpectedly, Atacado SA 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 Atacado SA will offset losses from the drop in Atacado SA's long position.| US Foods vs. The Chefs Warehouse | US Foods vs. Sysco | US Foods vs. SpartanNash Co | US Foods vs. Calavo Growers |
| Atacado SA vs. FTAI Aviation Ltd | Atacado SA vs. Yoshitsu Co Ltd | Atacado SA vs. IAC Inc | Atacado SA vs. United Rentals |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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