Correlation Between CONAGRA FOODS and HK Electric
Can any of the company-specific risk be diversified away by investing in both CONAGRA FOODS and HK Electric 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 CONAGRA FOODS and HK Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONAGRA FOODS and HK Electric Investments, you can compare the effects of market volatilities on CONAGRA FOODS and HK Electric 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 CONAGRA FOODS with a short position of HK Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONAGRA FOODS and HK Electric.
Diversification Opportunities for CONAGRA FOODS and HK Electric
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CONAGRA and HKT is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding CONAGRA FOODS and HK Electric Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HK Electric Investments and CONAGRA FOODS 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 CONAGRA FOODS are associated (or correlated) with HK Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HK Electric Investments has no effect on the direction of CONAGRA FOODS i.e., CONAGRA FOODS and HK Electric go up and down completely randomly.
Pair Corralation between CONAGRA FOODS and HK Electric
Assuming the 90 days trading horizon CONAGRA FOODS is expected to under-perform the HK Electric. In addition to that, CONAGRA FOODS is 1.6 times more volatile than HK Electric Investments. It trades about -0.07 of its total potential returns per unit of risk. HK Electric Investments is currently generating about 0.1 per unit of volatility. If you would invest 61.00 in HK Electric Investments on September 1, 2024 and sell it today you would earn a total of 1.00 from holding HK Electric Investments or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONAGRA FOODS vs. HK Electric Investments
Performance |
| Timeline |
| CONAGRA FOODS |
| HK Electric Investments |
CONAGRA FOODS and HK Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONAGRA FOODS and HK Electric
The main advantage of trading using opposite CONAGRA FOODS and HK Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONAGRA FOODS position performs unexpectedly, HK Electric 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 HK Electric will offset losses from the drop in HK Electric's long position.| CONAGRA FOODS vs. SIVERS SEMICONDUCTORS AB | CONAGRA FOODS vs. Darden Restaurants | CONAGRA FOODS vs. Reliance Steel Aluminum | CONAGRA FOODS vs. Q2M Managementberatung AG |
| HK Electric vs. Apple Inc | HK Electric vs. Apple Inc | HK Electric vs. Apple Inc | HK Electric vs. Apple Inc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |