Correlation Between Evolution Mining and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Evolution Mining 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 Evolution Mining and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution Mining and Hf Foods Group, you can compare the effects of market volatilities on Evolution Mining 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 Evolution Mining with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Mining and Hf Foods.
Diversification Opportunities for Evolution Mining and Hf Foods
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Evolution and HFFG is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Mining 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 Evolution Mining 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 Evolution Mining 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 Evolution Mining i.e., Evolution Mining and Hf Foods go up and down completely randomly.
Pair Corralation between Evolution Mining and Hf Foods
Assuming the 90 days horizon Evolution Mining is expected to under-perform the Hf Foods. In addition to that, Evolution Mining is 1.8 times more volatile than Hf Foods Group. It trades about -0.05 of its total potential returns per unit of risk. Hf Foods Group is currently generating about 0.02 per unit of volatility. If you would invest 353.00 in Hf Foods Group on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Hf Foods Group or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Mining vs. Hf Foods Group
Performance |
| Timeline |
| Evolution Mining |
| Hf Foods Group |
Evolution Mining and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Mining and Hf Foods
The main advantage of trading using opposite Evolution Mining and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Mining 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.| Evolution Mining vs. Aurion Resources | Evolution Mining vs. Liberty Gold Corp | Evolution Mining vs. Orezone Gold Corp | Evolution Mining vs. Fortuna Silver Mines |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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