Correlation Between Beyond Meat and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Beyond Meat 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 Beyond Meat and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and Hf Foods Group, you can compare the effects of market volatilities on Beyond Meat 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 Beyond Meat with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and Hf Foods.
Diversification Opportunities for Beyond Meat and Hf Foods
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beyond and HFFG is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat 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 Beyond Meat 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 Beyond Meat 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 Beyond Meat i.e., Beyond Meat and Hf Foods go up and down completely randomly.
Pair Corralation between Beyond Meat and Hf Foods
Given the investment horizon of 90 days Beyond Meat is expected to under-perform the Hf Foods. In addition to that, Beyond Meat is 1.34 times more volatile than Hf Foods Group. It trades about -0.04 of its total potential returns per unit of risk. Hf Foods Group is currently generating about -0.01 per unit of volatility. If you would invest 388.00 in Hf Foods Group on November 19, 2024 and sell it today you would lose (140.00) from holding Hf Foods Group or give up 36.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Meat vs. Hf Foods Group
Performance |
| Timeline |
| Beyond Meat |
| Hf Foods Group |
Beyond Meat and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and Hf Foods
The main advantage of trading using opposite Beyond Meat and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat 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.| Beyond Meat vs. Kraft Heinz Co | Beyond Meat vs. Hormel Foods | Beyond Meat vs. Kellanova | Beyond Meat vs. General Mills |
| 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.
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