Correlation Between Golden Entertainment and HF FOODS
Can any of the company-specific risk be diversified away by investing in both Golden Entertainment 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 Golden Entertainment and HF FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Entertainment and HF FOODS GRP, you can compare the effects of market volatilities on Golden Entertainment 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 Golden Entertainment with a short position of HF FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Entertainment and HF FOODS.
Diversification Opportunities for Golden Entertainment and HF FOODS
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Golden and 3GX is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Golden Entertainment and HF FOODS GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF FOODS GRP and Golden Entertainment 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 Golden Entertainment 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 GRP has no effect on the direction of Golden Entertainment i.e., Golden Entertainment and HF FOODS go up and down completely randomly.
Pair Corralation between Golden Entertainment and HF FOODS
Assuming the 90 days horizon Golden Entertainment is expected to generate 0.45 times more return on investment than HF FOODS. However, Golden Entertainment is 2.2 times less risky than HF FOODS. It trades about 0.15 of its potential returns per unit of risk. HF FOODS GRP is currently generating about -0.34 per unit of risk. If you would invest 3,020 in Golden Entertainment on November 3, 2024 and sell it today you would earn a total of 120.00 from holding Golden Entertainment or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Entertainment vs. HF FOODS GRP
Performance |
| Timeline |
| Golden Entertainment |
| HF FOODS GRP |
Golden Entertainment and HF FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Entertainment and HF FOODS
The main advantage of trading using opposite Golden Entertainment and HF FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Entertainment 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's long position.| Golden Entertainment vs. FIREWEED METALS P | Golden Entertainment vs. SCANSOURCE | Golden Entertainment vs. Singapore Telecommunications Limited | Golden Entertainment vs. ADRIATIC METALS LS 013355 |
| HF FOODS vs. Dairy Farm International | HF FOODS vs. Choice Hotels International | HF FOODS vs. Xenia Hotels Resorts | HF FOODS vs. DALATA HOTEL |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |