Correlation Between VOXX International and US Foods
Can any of the company-specific risk be diversified away by investing in both VOXX International and US Foods 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 VOXX International and US Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VOXX International and US Foods Holding, you can compare the effects of market volatilities on VOXX International and US Foods 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 VOXX International with a short position of US Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of VOXX International and US Foods.
Diversification Opportunities for VOXX International and US Foods
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VOXX and USFD is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding VOXX International and US Foods Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Foods Holding and VOXX International 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 VOXX International are associated (or correlated) with US Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Foods Holding has no effect on the direction of VOXX International i.e., VOXX International and US Foods go up and down completely randomly.
Pair Corralation between VOXX International and US Foods
Given the investment horizon of 90 days VOXX International is expected to generate about the same return on investment as US Foods Holding. However, VOXX International is 2.14 times more volatile than US Foods Holding. It trades about 0.02 of its potential returns per unit of risk. US Foods Holding is currently producing about 0.04 per unit of risk. If you would invest 3,762 in US Foods Holding on January 19, 2024 and sell it today you would earn a total of 1,233 from holding US Foods Holding or generate 32.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VOXX International vs. US Foods Holding
Performance |
| Timeline |
| VOXX International |
| US Foods Holding |
VOXX International and US Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VOXX International and US Foods
The main advantage of trading using opposite VOXX International and US Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VOXX International position performs unexpectedly, US Foods 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 US Foods will offset losses from the drop in US Foods' long position.| VOXX International vs. LG Display Co | VOXX International vs. Vizio Holding Corp | VOXX International vs. Turtle Beach Corp | VOXX International vs. Emerson Radio |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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 | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |