Correlation Between United Natural and BLACK
Specify exactly 2 symbols:
By analyzing existing cross correlation between United Natural Foods and BLACK HILLS P, you can compare the effects of market volatilities on United Natural and BLACK 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 BLACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Natural and BLACK.
Diversification Opportunities for United Natural and BLACK
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and BLACK is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding United Natural Foods and BLACK HILLS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLACK HILLS P 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 BLACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLACK HILLS P has no effect on the direction of United Natural i.e., United Natural and BLACK go up and down completely randomly.
Pair Corralation between United Natural and BLACK
Given the investment horizon of 90 days United Natural Foods is expected to generate 1.83 times more return on investment than BLACK. However, United Natural is 1.83 times more volatile than BLACK HILLS P. It trades about 0.28 of its potential returns per unit of risk. BLACK HILLS P is currently generating about -0.15 per unit of risk. If you would invest 2,565 in United Natural Foods on October 22, 2024 and sell it today you would earn a total of 293.00 from holding United Natural Foods or generate 11.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 84.21% |
Values | Daily Returns |
United Natural Foods vs. BLACK HILLS P
Performance |
Timeline |
United Natural Foods |
BLACK HILLS P |
United Natural and BLACK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Natural and BLACK
The main advantage of trading using opposite United Natural and BLACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Natural position performs unexpectedly, BLACK 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 BLACK will offset losses from the drop in BLACK's long position.United Natural vs. The Chefs Warehouse | United Natural vs. Mission Produce | United Natural vs. The Andersons | United Natural vs. Performance Food Group |
BLACK vs. Corning Incorporated | BLACK vs. Summit Environmental | BLACK vs. Tianjin Capital Environmental | BLACK vs. HNI Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |