Correlation Between Superior Plus and HF FOODS
Can any of the company-specific risk be diversified away by investing in both Superior Plus 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 Superior Plus and HF FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and HF FOODS GRP, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of HF FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and HF FOODS.
Diversification Opportunities for Superior Plus and HF FOODS
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Superior and 3GX is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp 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 Superior Plus 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 Superior Plus Corp 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 Superior Plus i.e., Superior Plus and HF FOODS go up and down completely randomly.
Pair Corralation between Superior Plus and HF FOODS
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the HF FOODS. In addition to that, Superior Plus is 2.24 times more volatile than HF FOODS GRP. It trades about -0.01 of its total potential returns per unit of risk. HF FOODS GRP is currently generating about 0.13 per unit of volatility. If you would invest 322.00 in HF FOODS GRP on August 29, 2024 and sell it today you would earn a total of 20.00 from holding HF FOODS GRP or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Superior Plus Corp vs. HF FOODS GRP
Performance |
| Timeline |
| Superior Plus Corp |
| HF FOODS GRP |
Superior Plus and HF FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and HF FOODS
The main advantage of trading using opposite Superior Plus and HF FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.| Superior Plus vs. Meli Hotels International | Superior Plus vs. InterContinental Hotels Group | Superior Plus vs. PT Bank Maybank | Superior Plus vs. Pebblebrook Hotel Trust |
| HF FOODS vs. Superior Plus Corp | HF FOODS vs. SIVERS SEMICONDUCTORS AB | HF FOODS vs. Talanx AG | HF FOODS vs. 2G ENERGY |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |