Correlation Between US Foods and EVS Broadcast

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Can any of the company-specific risk be diversified away by investing in both US Foods and EVS Broadcast 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 EVS Broadcast 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 EVS Broadcast Equipment, you can compare the effects of market volatilities on US Foods and EVS Broadcast 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 EVS Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Foods and EVS Broadcast.

Diversification Opportunities for US Foods and EVS Broadcast

UFHEVSDiversified AwayUFHEVSDiversified Away100%
0.54
  Correlation Coefficient

Very weak diversification

The 3 months correlation between UFH and EVS is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding US Foods Holding and EVS Broadcast Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVS Broadcast Equipment 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 EVS Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVS Broadcast Equipment has no effect on the direction of US Foods i.e., US Foods and EVS Broadcast go up and down completely randomly.

Pair Corralation between US Foods and EVS Broadcast

Assuming the 90 days horizon US Foods Holding is expected to generate 1.34 times more return on investment than EVS Broadcast. However, US Foods is 1.34 times more volatile than EVS Broadcast Equipment. It trades about 0.14 of its potential returns per unit of risk. EVS Broadcast Equipment is currently generating about 0.1 per unit of risk. If you would invest  5,750  in US Foods Holding on October 21, 2024 and sell it today you would earn a total of  850.00  from holding US Foods Holding or generate 14.78% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

US Foods Holding  vs.  EVS Broadcast Equipment

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -50510152025
JavaScript chart by amCharts 3.21.15UFH 5E1
       Timeline  
US Foods Holding 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in US Foods Holding are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, US Foods reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan56586062646668
EVS Broadcast Equipment 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in EVS Broadcast Equipment are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, EVS Broadcast may actually be approaching a critical reversion point that can send shares even higher in February 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan2728293031

US Foods and EVS Broadcast Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.03-3.77-2.51-1.240.02111.332.714.095.476.85 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15UFH 5E1
       Returns  

Pair Trading with US Foods and EVS Broadcast

The main advantage of trading using opposite US Foods and EVS Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Foods position performs unexpectedly, EVS Broadcast 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 EVS Broadcast will offset losses from the drop in EVS Broadcast's long position.
The idea behind US Foods Holding and EVS Broadcast Equipment 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.
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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