Correlation Between Hunya Foods and Standard Foods
Can any of the company-specific risk be diversified away by investing in both Hunya Foods and Standard 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 Hunya Foods and Standard Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hunya Foods Co and Standard Foods Corp, you can compare the effects of market volatilities on Hunya Foods and Standard 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 Hunya Foods with a short position of Standard Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunya Foods and Standard Foods.
Diversification Opportunities for Hunya Foods and Standard Foods
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunya and Standard is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hunya Foods Co and Standard Foods Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Foods Corp and Hunya 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 Hunya Foods Co are associated (or correlated) with Standard Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Foods Corp has no effect on the direction of Hunya Foods i.e., Hunya Foods and Standard Foods go up and down completely randomly.
Pair Corralation between Hunya Foods and Standard Foods
Assuming the 90 days trading horizon Hunya Foods Co is expected to generate 1.36 times more return on investment than Standard Foods. However, Hunya Foods is 1.36 times more volatile than Standard Foods Corp. It trades about 0.0 of its potential returns per unit of risk. Standard Foods Corp is currently generating about -0.03 per unit of risk. If you would invest 2,380 in Hunya Foods Co on November 28, 2024 and sell it today you would lose (70.00) from holding Hunya Foods Co or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunya Foods Co vs. Standard Foods Corp
Performance |
| Timeline |
| Hunya Foods |
| Standard Foods Corp |
Hunya Foods and Standard Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunya Foods and Standard Foods
The main advantage of trading using opposite Hunya Foods and Standard Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunya Foods position performs unexpectedly, Standard 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 Standard Foods will offset losses from the drop in Standard Foods' long position.| Hunya Foods vs. AGV Products Corp | Hunya Foods vs. Taisun Enterprise Co | Hunya Foods vs. De Licacy Industrial | Hunya Foods vs. Wisher Industrial Co |
| Standard Foods vs. Uni President Enterprises Corp | Standard Foods vs. TTET Union Corp | Standard Foods vs. President Chain Store | Standard Foods vs. Charoen Pokphand Enterprise |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |