Correlation Between Universal and DELHAIZE
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By analyzing existing cross correlation between Universal and DELHAIZE GROUP SA, you can compare the effects of market volatilities on Universal and DELHAIZE 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 Universal with a short position of DELHAIZE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal and DELHAIZE.
Diversification Opportunities for Universal and DELHAIZE
Very good diversification
The 3 months correlation between Universal and DELHAIZE is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Universal and DELHAIZE GROUP SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DELHAIZE GROUP SA and Universal 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 Universal are associated (or correlated) with DELHAIZE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DELHAIZE GROUP SA has no effect on the direction of Universal i.e., Universal and DELHAIZE go up and down completely randomly.
Pair Corralation between Universal and DELHAIZE
Considering the 90-day investment horizon Universal is expected to generate 1.53 times more return on investment than DELHAIZE. However, Universal is 1.53 times more volatile than DELHAIZE GROUP SA. It trades about 0.35 of its potential returns per unit of risk. DELHAIZE GROUP SA is currently generating about 0.18 per unit of risk. If you would invest 5,109 in Universal on September 2, 2024 and sell it today you would earn a total of 603.00 from holding Universal or generate 11.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
Universal vs. DELHAIZE GROUP SA
Performance |
| Timeline |
| Universal |
| DELHAIZE GROUP SA |
Universal and DELHAIZE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal and DELHAIZE
The main advantage of trading using opposite Universal and DELHAIZE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal position performs unexpectedly, DELHAIZE 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 DELHAIZE will offset losses from the drop in DELHAIZE's long position.| Universal vs. Imperial Brands PLC | Universal vs. Japan Tobacco ADR | Universal vs. Philip Morris International | Universal vs. Turning Point Brands |
| DELHAIZE vs. Universal | DELHAIZE vs. Dave Busters Entertainment | DELHAIZE vs. Dennys Corp | DELHAIZE vs. Willamette Valley Vineyards |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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