Correlation Between Polaris Industries and USANA Health

Can any of the company-specific risk be diversified away by investing in both Polaris Industries and USANA Health 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 Polaris Industries and USANA Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Polaris Industries and USANA Health Sciences, you can compare the effects of market volatilities on Polaris Industries and USANA Health 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 Polaris Industries with a short position of USANA Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polaris Industries and USANA Health.

Diversification Opportunities for Polaris Industries and USANA Health

0.58

Correlation Coefficient

Polaris Industries  USANA Health

Very weak diversification

The 3 months correlation between Polaris and USANA is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Polaris Industries and USANA Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USANA Health Sciences and Polaris Industries 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 Polaris Industries are associated (or correlated) with USANA Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USANA Health Sciences has no effect on the direction of Polaris Industries i.e., Polaris Industries and USANA Health go up and down completely randomly.

Pair Corralation between Polaris Industries and USANA Health

Considering the 90-day investment horizon Polaris Industries is expected to under-perform the USANA Health. In addition to that, Polaris Industries is 1.73 times more volatile than USANA Health Sciences. It trades about 0.0 of its total potential returns per unit of risk. USANA Health Sciences is currently generating about 0.05 per unit of volatility. If you would invest  2,798  in USANA Health Sciences on March 17, 2025 and sell it today you would earn a total of  157.00  from holding USANA Health Sciences or generate 5.61% return on investment over 90 days.

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

Polaris Industries  vs.  USANA Health Sciences

Polaris Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days Polaris Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Polaris Industries is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

USANA Health Sciences

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in USANA Health Sciences are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, USANA Health may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Polaris Industries and USANA Health

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

The idea behind Polaris Industries and USANA Health Sciences 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.