Correlation Between Franklin Credit and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Franklin Credit 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 Franklin Credit and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Credit Management and Hf Foods Group, you can compare the effects of market volatilities on Franklin Credit 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 Franklin Credit with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and Hf Foods.
Diversification Opportunities for Franklin Credit and Hf Foods
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Franklin and HFFG is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management 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 Franklin Credit 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 Franklin Credit Management 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 Franklin Credit i.e., Franklin Credit and Hf Foods go up and down completely randomly.
Pair Corralation between Franklin Credit and Hf Foods
Given the investment horizon of 90 days Franklin Credit Management is expected to under-perform the Hf Foods. In addition to that, Franklin Credit is 2.56 times more volatile than Hf Foods Group. It trades about -0.11 of its total potential returns per unit of risk. Hf Foods Group is currently generating about 0.23 per unit of volatility. If you would invest 342.00 in Hf Foods Group on September 1, 2024 and sell it today you would earn a total of 36.00 from holding Hf Foods Group or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Credit Management vs. Hf Foods Group
Performance |
| Timeline |
| Franklin Credit Mana |
| Hf Foods Group |
Franklin Credit and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and Hf Foods
The main advantage of trading using opposite Franklin Credit and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit 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.| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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