Correlation Between HF FOODS and Bayerische Motoren
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By analyzing existing cross correlation between HF FOODS GRP and Bayerische Motoren Werke, you can compare the effects of market volatilities on HF FOODS and Bayerische Motoren 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 Bayerische Motoren. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF FOODS and Bayerische Motoren.
Diversification Opportunities for HF FOODS and Bayerische Motoren
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 3GX and Bayerische is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding HF FOODS GRP and Bayerische Motoren Werke in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayerische Motoren Werke 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 Bayerische Motoren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayerische Motoren Werke has no effect on the direction of HF FOODS i.e., HF FOODS and Bayerische Motoren go up and down completely randomly.
Pair Corralation between HF FOODS and Bayerische Motoren
Assuming the 90 days horizon HF FOODS GRP is expected to generate 1.17 times more return on investment than Bayerische Motoren. However, HF FOODS is 1.17 times more volatile than Bayerische Motoren Werke. It trades about 0.27 of its potential returns per unit of risk. Bayerische Motoren Werke is currently generating about -0.1 per unit of risk. If you would invest 298.00 in HF FOODS GRP on September 1, 2024 and sell it today you would earn a total of 42.00 from holding HF FOODS GRP or generate 14.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF FOODS GRP vs. Bayerische Motoren Werke
Performance |
| Timeline |
| HF FOODS GRP |
| Bayerische Motoren Werke |
HF FOODS and Bayerische Motoren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF FOODS and Bayerische Motoren
The main advantage of trading using opposite HF FOODS and Bayerische Motoren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF FOODS position performs unexpectedly, Bayerische Motoren 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 Bayerische Motoren will offset losses from the drop in Bayerische Motoren's long position.| HF FOODS vs. Playtech plc | HF FOODS vs. Perdoceo Education | HF FOODS vs. DeVry Education Group | HF FOODS vs. Xinhua Winshare Publishing |
| Bayerische Motoren vs. VULCAN MATERIALS | Bayerische Motoren vs. EAGLE MATERIALS | Bayerische Motoren vs. Summit Materials | Bayerische Motoren vs. Singapore Telecommunications Limited |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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