Correlation Between Brunswick and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Brunswick 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 Brunswick and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brunswick and Hf Foods Group, you can compare the effects of market volatilities on Brunswick 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 Brunswick with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brunswick and Hf Foods.
Diversification Opportunities for Brunswick and Hf Foods
Very weak diversification
The 3 months correlation between Brunswick and HFFG is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Brunswick and Hf Foods Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hf Foods Group and Brunswick 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 Brunswick 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 Group has no effect on the direction of Brunswick i.e., Brunswick and Hf Foods go up and down completely randomly.
Pair Corralation between Brunswick and Hf Foods
Allowing for the 90-day total investment horizon Brunswick is expected to generate 39.38 times less return on investment than Hf Foods. In addition to that, Brunswick is 1.18 times more volatile than Hf Foods Group. It trades about 0.01 of its total potential returns per unit of risk. Hf Foods Group is currently generating about 0.25 per unit of volatility. If you would invest 333.00 in Hf Foods Group on September 4, 2024 and sell it today you would earn a total of 37.00 from holding Hf Foods Group or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brunswick vs. Hf Foods Group
Performance |
| Timeline |
| Brunswick |
| Hf Foods Group |
Brunswick and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brunswick and Hf Foods
The main advantage of trading using opposite Brunswick and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brunswick 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' long position.| Brunswick vs. Thor Industries | Brunswick vs. BRP Inc | Brunswick vs. EZGO Technologies | Brunswick vs. Polaris Industries |
| Hf Foods vs. Innovative Food Hldg | Hf Foods vs. G Willi Food International | Hf Foods vs. Calavo Growers | Hf Foods vs. The Chefs Warehouse |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |