Correlation Between Calavo Growers and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Calavo Growers 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 Calavo Growers and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calavo Growers and Hf Foods Group, you can compare the effects of market volatilities on Calavo Growers 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 Calavo Growers with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calavo Growers and Hf Foods.
Diversification Opportunities for Calavo Growers and Hf Foods
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calavo and HFFG is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Calavo Growers 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 Calavo Growers 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 Calavo Growers 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 Calavo Growers i.e., Calavo Growers and Hf Foods go up and down completely randomly.
Pair Corralation between Calavo Growers and Hf Foods
Given the investment horizon of 90 days Calavo Growers is expected to generate 1.8 times less return on investment than Hf Foods. But when comparing it to its historical volatility, Calavo Growers is 1.67 times less risky than Hf Foods. It trades about 0.03 of its potential returns per unit of risk. Hf Foods Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 331.00 in Hf Foods Group on August 24, 2024 and sell it today you would earn a total of 10.00 from holding Hf Foods Group or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calavo Growers vs. Hf Foods Group
Performance |
| Timeline |
| Calavo Growers |
| Hf Foods Group |
Calavo Growers and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calavo Growers and Hf Foods
The main advantage of trading using opposite Calavo Growers and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calavo Growers 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.| Calavo Growers vs. The Chefs Warehouse | Calavo Growers vs. The Andersons | Calavo Growers vs. AMCON Distributing | Calavo Growers vs. Performance Food Group |
| Hf Foods vs. Performance Food Group | Hf Foods vs. The Chefs Warehouse | Hf Foods vs. United Natural Foods | Hf Foods vs. Calavo Growers |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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