Correlation Between HF FOODS and AUSTEVOLL SEAFOOD
Can any of the company-specific risk be diversified away by investing in both HF FOODS and AUSTEVOLL 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 AUSTEVOLL 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 AUSTEVOLL SEAFOOD, you can compare the effects of market volatilities on HF FOODS and AUSTEVOLL 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 AUSTEVOLL SEAFOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF FOODS and AUSTEVOLL SEAFOOD.
Diversification Opportunities for HF FOODS and AUSTEVOLL SEAFOOD
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 3GX and AUSTEVOLL is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding HF FOODS GRP and AUSTEVOLL SEAFOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUSTEVOLL SEAFOOD has no effect on the direction of HF FOODS i.e., HF FOODS and AUSTEVOLL SEAFOOD go up and down completely randomly.
Pair Corralation between HF FOODS and AUSTEVOLL SEAFOOD
Assuming the 90 days horizon HF FOODS GRP is expected to under-perform the AUSTEVOLL SEAFOOD. In addition to that, HF FOODS is 1.61 times more volatile than AUSTEVOLL SEAFOOD. It trades about -0.49 of its total potential returns per unit of risk. AUSTEVOLL SEAFOOD is currently generating about 0.04 per unit of volatility. If you would invest 897.00 in AUSTEVOLL SEAFOOD on November 27, 2024 and sell it today you would earn a total of 9.00 from holding AUSTEVOLL SEAFOOD or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF FOODS GRP vs. AUSTEVOLL SEAFOOD
Performance |
| Timeline |
| HF FOODS GRP |
| AUSTEVOLL SEAFOOD |
HF FOODS and AUSTEVOLL SEAFOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF FOODS and AUSTEVOLL SEAFOOD
The main advantage of trading using opposite HF FOODS and AUSTEVOLL SEAFOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF FOODS position performs unexpectedly, AUSTEVOLL 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 AUSTEVOLL SEAFOOD will offset losses from the drop in AUSTEVOLL SEAFOOD's long position.| HF FOODS vs. Playtech plc | HF FOODS vs. Playa Hotels Resorts | HF FOODS vs. SLIGRO FOOD GROUP | HF FOODS vs. Nomad Foods |
| AUSTEVOLL SEAFOOD vs. KAUFMAN ET BROAD | AUSTEVOLL SEAFOOD vs. EVS Broadcast Equipment | AUSTEVOLL SEAFOOD vs. Cairo Communication SpA | AUSTEVOLL SEAFOOD vs. ScanSource |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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