Correlation Between HF FOODS and Air Products
Can any of the company-specific risk be diversified away by investing in both HF FOODS and Air Products 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 HF FOODS and Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HF FOODS GRP and Air Products and, you can compare the effects of market volatilities on HF FOODS and Air Products 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 HF FOODS with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF FOODS and Air Products.
Diversification Opportunities for HF FOODS and Air Products
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between 3GX and Air is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding HF FOODS GRP and Air Products and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products and HF 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 HF FOODS GRP are associated (or correlated) with Air Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Products has no effect on the direction of HF FOODS i.e., HF FOODS and Air Products go up and down completely randomly.
Pair Corralation between HF FOODS and Air Products
Assuming the 90 days horizon HF FOODS GRP is expected to under-perform the Air Products. In addition to that, HF FOODS is 1.59 times more volatile than Air Products and. It trades about -0.49 of its total potential returns per unit of risk. Air Products and is currently generating about -0.1 per unit of volatility. If you would invest 30,790 in Air Products and on November 27, 2024 and sell it today you would lose (1,210) from holding Air Products and or give up 3.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF FOODS GRP vs. Air Products and
Performance |
| Timeline |
| HF FOODS GRP |
| Air Products |
HF FOODS and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF FOODS and Air Products
The main advantage of trading using opposite HF FOODS and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF FOODS position performs unexpectedly, Air Products 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 Air Products will offset losses from the drop in Air Products' long position.| HF FOODS vs. Playtech plc | HF FOODS vs. Playa Hotels Resorts | HF FOODS vs. SLIGRO FOOD GROUP | HF FOODS vs. Nomad Foods |
| Air Products vs. Playa Hotels Resorts | Air Products vs. Gaming and Leisure | Air Products vs. UNIVERSAL DISPLAY | Air Products vs. PLAYMATES HLDGS NEW |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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