Correlation Between Eagle Point and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Eagle Point 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 Eagle Point and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Point Credit and Hf Foods Group, you can compare the effects of market volatilities on Eagle Point 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 Eagle Point with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and Hf Foods.
Diversification Opportunities for Eagle Point and Hf Foods
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eagle and HFFG is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit 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 Eagle Point 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 Eagle Point Credit 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 Eagle Point i.e., Eagle Point and Hf Foods go up and down completely randomly.
Pair Corralation between Eagle Point and Hf Foods
Given the investment horizon of 90 days Eagle Point Credit is expected to generate 0.09 times more return on investment than Hf Foods. However, Eagle Point Credit is 11.2 times less risky than Hf Foods. It trades about 0.12 of its potential returns per unit of risk. Hf Foods Group is currently generating about 0.01 per unit of risk. If you would invest 2,286 in Eagle Point Credit on August 31, 2024 and sell it today you would earn a total of 208.00 from holding Eagle Point Credit or generate 9.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 59.09% |
| Values | Daily Returns |
Eagle Point Credit vs. Hf Foods Group
Performance |
| Timeline |
| Eagle Point Credit |
| Hf Foods Group |
Eagle Point and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Point and Hf Foods
The main advantage of trading using opposite Eagle Point and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point 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.| Eagle Point vs. Blackhawk Growth Corp | Eagle Point vs. Guardian Capital Group | Eagle Point vs. Flow Capital Corp | Eagle Point vs. Princeton Capital |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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