Correlation Between ATOSS SOFTWARE and United Natural

Can any of the company-specific risk be diversified away by investing in both ATOSS SOFTWARE and United Natural 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 ATOSS SOFTWARE and United Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ATOSS SOFTWARE and United Natural Foods, you can compare the effects of market volatilities on ATOSS SOFTWARE and United Natural 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 ATOSS SOFTWARE with a short position of United Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATOSS SOFTWARE and United Natural.

Diversification Opportunities for ATOSS SOFTWARE and United Natural

-0.31

Correlation Coefficient

ATOSS SOFTWARE  United Natural

Very good diversification

The 3 months correlation between ATOSS and United is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding ATOSS SOFTWARE and United Natural Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Natural Foods and ATOSS SOFTWARE 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 ATOSS SOFTWARE are associated (or correlated) with United Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Natural Foods has no effect on the direction of ATOSS SOFTWARE i.e., ATOSS SOFTWARE and United Natural go up and down completely randomly.

Pair Corralation between ATOSS SOFTWARE and United Natural

Assuming the 90 days trading horizon ATOSS SOFTWARE is expected to under-perform the United Natural. But the stock apears to be less risky and, when comparing its historical volatility, ATOSS SOFTWARE is 2.47 times less risky than United Natural. The stock trades about -0.04 of its potential returns per unit of risk. The United Natural Foods is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  2,389  in United Natural Foods on December 1, 2024 and sell it today you would earn a total of  590.00  from holding United Natural Foods or generate 24.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ATOSS SOFTWARE  vs.  United Natural Foods

ATOSS SOFTWARE

Risk-Adjusted Performance

Very Weak

Over the last 90 days ATOSS SOFTWARE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ATOSS SOFTWARE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

United Natural Foods

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in United Natural Foods are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, United Natural reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ATOSS SOFTWARE and United Natural

The main advantage of trading using opposite ATOSS SOFTWARE and United Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATOSS SOFTWARE position performs unexpectedly, United Natural 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 United Natural will offset losses from the drop in United Natural's long position.

The idea behind ATOSS SOFTWARE and United Natural Foods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.