Correlation Between HF FOODS and CHINA TELECOM
Can any of the company-specific risk be diversified away by investing in both HF FOODS and CHINA TELECOM 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 CHINA TELECOM 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 CHINA TELECOM H , you can compare the effects of market volatilities on HF FOODS and CHINA TELECOM 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 CHINA TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF FOODS and CHINA TELECOM.
Diversification Opportunities for HF FOODS and CHINA TELECOM
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between 3GX and CHINA is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding HF FOODS GRP and CHINA TELECOM H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TELECOM H 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 CHINA TELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TELECOM H has no effect on the direction of HF FOODS i.e., HF FOODS and CHINA TELECOM go up and down completely randomly.
Pair Corralation between HF FOODS and CHINA TELECOM
If you would invest 316.00 in HF FOODS GRP on September 20, 2024 and sell it today you would earn a total of 30.00 from holding HF FOODS GRP or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF FOODS GRP vs. CHINA TELECOM H
Performance |
| Timeline |
| HF FOODS GRP |
| CHINA TELECOM H |
HF FOODS and CHINA TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF FOODS and CHINA TELECOM
The main advantage of trading using opposite HF FOODS and CHINA TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF FOODS position performs unexpectedly, CHINA TELECOM 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 CHINA TELECOM will offset losses from the drop in CHINA TELECOM's long position.| HF FOODS vs. Metro AG | HF FOODS vs. Superior Plus Corp | HF FOODS vs. SIVERS SEMICONDUCTORS AB | HF FOODS vs. NorAm Drilling AS |
| CHINA TELECOM vs. Choice Hotels International | CHINA TELECOM vs. MELIA HOTELS | CHINA TELECOM vs. InterContinental Hotels Group | CHINA TELECOM vs. INTERCONT HOTELS |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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