Correlation Between HF FOODS and Lery Seafood
Can any of the company-specific risk be diversified away by investing in both HF FOODS and Lery Seafood 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 Lery Seafood 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 Lery Seafood Group, you can compare the effects of market volatilities on HF FOODS and Lery Seafood 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 Lery Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF FOODS and Lery Seafood.
Diversification Opportunities for HF FOODS and Lery Seafood
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 3GX and Lery is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding HF FOODS GRP and Lery Seafood Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lery Seafood Group 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 Lery Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lery Seafood Group has no effect on the direction of HF FOODS i.e., HF FOODS and Lery Seafood go up and down completely randomly.
Pair Corralation between HF FOODS and Lery Seafood
Assuming the 90 days horizon HF FOODS GRP is expected to under-perform the Lery Seafood. In addition to that, HF FOODS is 1.49 times more volatile than Lery Seafood Group. It trades about -0.44 of its total potential returns per unit of risk. Lery Seafood Group is currently generating about 0.36 per unit of volatility. If you would invest 404.00 in Lery Seafood Group on October 21, 2024 and sell it today you would earn a total of 36.00 from holding Lery Seafood Group or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF FOODS GRP vs. Lery Seafood Group
Performance |
| Timeline |
| HF FOODS GRP |
| Lery Seafood Group |
HF FOODS and Lery Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF FOODS and Lery Seafood
The main advantage of trading using opposite HF FOODS and Lery Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF FOODS position performs unexpectedly, Lery Seafood 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 Lery Seafood will offset losses from the drop in Lery Seafood's long position.| HF FOODS vs. Mitsui Chemicals | HF FOODS vs. Silicon Motion Technology | HF FOODS vs. Sanyo Chemical Industries | HF FOODS vs. INDO RAMA SYNTHETIC |
| Lery Seafood vs. Mowi ASA | Lery Seafood vs. LEROY SEAFOOD GRUNSPADR | Lery Seafood vs. Yihai International Holding | Lery Seafood vs. Lery Seafood Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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