Correlation Between Bet-at-home and HF FOODS
Can any of the company-specific risk be diversified away by investing in both Bet-at-home 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 Bet-at-home and HF FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bet at home AG and HF FOODS GRP, you can compare the effects of market volatilities on Bet-at-home 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 Bet-at-home with a short position of HF FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet-at-home and HF FOODS.
Diversification Opportunities for Bet-at-home and HF FOODS
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bet-at-home and 3GX is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG 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 Bet-at-home 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 bet at home AG 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 Bet-at-home i.e., Bet-at-home and HF FOODS go up and down completely randomly.
Pair Corralation between Bet-at-home and HF FOODS
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the HF FOODS. But the stock apears to be less risky and, when comparing its historical volatility, bet at home AG is 1.24 times less risky than HF FOODS. The stock trades about -0.02 of its potential returns per unit of risk. The HF FOODS GRP is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 474.00 in HF FOODS GRP on September 12, 2024 and sell it today you would lose (114.00) from holding HF FOODS GRP or give up 24.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
bet at home AG vs. HF FOODS GRP
Performance |
| Timeline |
| bet at home |
| HF FOODS GRP |
Bet-at-home and HF FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet-at-home and HF FOODS
The main advantage of trading using opposite Bet-at-home and HF FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet-at-home 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.| Bet-at-home vs. Apple Inc | Bet-at-home vs. Apple Inc | Bet-at-home vs. Apple Inc | Bet-at-home vs. Apple Inc |
| HF FOODS vs. INFORMATION SVC GRP | HF FOODS vs. Pure Storage | HF FOODS vs. DATAGROUP SE | HF FOODS vs. AXWAY SOFTWARE EO |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |