Correlation Between Marie Brizard and HF FOODS
Can any of the company-specific risk be diversified away by investing in both Marie Brizard 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 Marie Brizard and HF FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marie Brizard Wine and HF FOODS GRP, you can compare the effects of market volatilities on Marie Brizard 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 Marie Brizard with a short position of HF FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and HF FOODS.
Diversification Opportunities for Marie Brizard and HF FOODS
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marie and 3GX is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine 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 Marie Brizard 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 Marie Brizard Wine 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 Marie Brizard i.e., Marie Brizard and HF FOODS go up and down completely randomly.
Pair Corralation between Marie Brizard and HF FOODS
Assuming the 90 days trading horizon Marie Brizard Wine is expected to under-perform the HF FOODS. But the stock apears to be less risky and, when comparing its historical volatility, Marie Brizard Wine is 1.55 times less risky than HF FOODS. The stock trades about -0.12 of its potential returns per unit of risk. The HF FOODS GRP is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 298.00 in HF FOODS GRP on September 1, 2024 and sell it today you would earn a total of 42.00 from holding HF FOODS GRP or generate 14.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Marie Brizard Wine vs. HF FOODS GRP
Performance |
| Timeline |
| Marie Brizard Wine |
| HF FOODS GRP |
Marie Brizard and HF FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marie Brizard and HF FOODS
The main advantage of trading using opposite Marie Brizard and HF FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marie Brizard 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.| Marie Brizard vs. SIVERS SEMICONDUCTORS AB | Marie Brizard vs. Darden Restaurants | Marie Brizard vs. Reliance Steel Aluminum | Marie Brizard vs. Q2M Managementberatung AG |
| HF FOODS vs. Playtech plc | HF FOODS vs. Perdoceo Education | HF FOODS vs. DeVry Education Group | HF FOODS vs. Xinhua Winshare Publishing |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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