Correlation Between Cabo Drilling and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Cabo Drilling 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 Cabo Drilling and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cabo Drilling Corp and Hf Foods Group, you can compare the effects of market volatilities on Cabo Drilling 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 Cabo Drilling with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabo Drilling and Hf Foods.
Diversification Opportunities for Cabo Drilling and Hf Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cabo and HFFG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cabo Drilling Corp 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 Cabo Drilling 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 Cabo Drilling Corp 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 Cabo Drilling i.e., Cabo Drilling and Hf Foods go up and down completely randomly.
Pair Corralation between Cabo Drilling and Hf Foods
If you would invest 344.00 in Hf Foods Group on August 31, 2024 and sell it today you would earn a total of 17.00 from holding Hf Foods Group or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabo Drilling Corp vs. Hf Foods Group
Performance |
| Timeline |
| Cabo Drilling Corp |
| Hf Foods Group |
Cabo Drilling and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabo Drilling and Hf Foods
The main advantage of trading using opposite Cabo Drilling and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabo Drilling 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.| Cabo Drilling vs. South32 Limited | Cabo Drilling vs. NioCorp Developments Ltd | Cabo Drilling vs. HUMANA INC | Cabo Drilling vs. SCOR PK |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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