Correlation Between United Paragon and Swift Foods

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

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

Diversification Opportunities for United Paragon and Swift Foods

-0.24

Correlation Coefficient

United Paragon  Swift Foods

Very good diversification

The 3 months correlation between United and Swift is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding United Paragon Mining and Swift Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swift Foods and United Paragon 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 Paragon Mining are associated (or correlated) with Swift Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swift Foods has no effect on the direction of United Paragon i.e., United Paragon and Swift Foods go up and down completely randomly.

Pair Corralation between United Paragon and Swift Foods

Assuming the 90 days trading horizon United Paragon Mining is expected to under-perform the Swift Foods. But the stock apears to be less risky and, when comparing its historical volatility, United Paragon Mining is 1.95 times less risky than Swift Foods. The stock trades about -0.07 of its potential returns per unit of risk. The Swift Foods is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  4.90  in Swift Foods on April 21, 2025 and sell it today you would earn a total of  0.10  from holding Swift Foods or generate 2.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	87.5%
Values	Daily Returns

United Paragon Mining  vs.  Swift Foods

United Paragon Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days United Paragon Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Swift Foods

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Swift Foods are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Swift Foods exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with United Paragon and Swift Foods

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

The idea behind United Paragon Mining and Swift 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.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.