Correlation Between AUSNUTRIA DAIRY and HF FOODS
Can any of the company-specific risk be diversified away by investing in both AUSNUTRIA DAIRY and HF FOODS 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 AUSNUTRIA DAIRY and HF FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AUSNUTRIA DAIRY and HF FOODS GRP, you can compare the effects of market volatilities on AUSNUTRIA DAIRY and HF FOODS 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 AUSNUTRIA DAIRY with a short position of HF FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUSNUTRIA DAIRY and HF FOODS.
Diversification Opportunities for AUSNUTRIA DAIRY and HF FOODS
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AUSNUTRIA and 3GX is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding AUSNUTRIA DAIRY and HF FOODS GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF FOODS GRP and AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY are associated (or correlated) with HF FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF FOODS GRP has no effect on the direction of AUSNUTRIA DAIRY i.e., AUSNUTRIA DAIRY and HF FOODS go up and down completely randomly.
Pair Corralation between AUSNUTRIA DAIRY and HF FOODS
Assuming the 90 days trading horizon AUSNUTRIA DAIRY is expected to under-perform the HF FOODS. In addition to that, AUSNUTRIA DAIRY is 1.42 times more volatile than HF FOODS GRP. It trades about -0.14 of its total potential returns per unit of risk. HF FOODS GRP is currently generating about 0.17 per unit of volatility. 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 |
AUSNUTRIA DAIRY vs. HF FOODS GRP
Performance |
| Timeline |
| AUSNUTRIA DAIRY |
| HF FOODS GRP |
AUSNUTRIA DAIRY and HF FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUSNUTRIA DAIRY and HF FOODS
The main advantage of trading using opposite AUSNUTRIA DAIRY and HF FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUSNUTRIA DAIRY position performs unexpectedly, HF FOODS 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 HF FOODS will offset losses from the drop in HF FOODS's long position.| AUSNUTRIA DAIRY vs. Apple Inc | AUSNUTRIA DAIRY vs. Apple Inc | AUSNUTRIA DAIRY vs. Apple Inc | AUSNUTRIA DAIRY vs. Microsoft |
| HF FOODS vs. Metro AG | HF FOODS vs. Superior Plus Corp | HF FOODS vs. SIVERS SEMICONDUCTORS AB | HF FOODS vs. NorAm Drilling AS |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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