Correlation Between Hf Foods and African Agriculture
Can any of the company-specific risk be diversified away by investing in both Hf Foods and African Agriculture 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 Hf Foods and African Agriculture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hf Foods Group and African Agriculture Holdings, you can compare the effects of market volatilities on Hf Foods and African Agriculture 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 Hf Foods with a short position of African Agriculture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and African Agriculture.
Diversification Opportunities for Hf Foods and African Agriculture
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HFFG and African is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and African Agriculture Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on African Agriculture and Hf Foods 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 Hf Foods Group are associated (or correlated) with African Agriculture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of African Agriculture has no effect on the direction of Hf Foods i.e., Hf Foods and African Agriculture go up and down completely randomly.
Pair Corralation between Hf Foods and African Agriculture
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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Hf Foods Group vs. African Agriculture Holdings
Performance |
| Timeline |
| Hf Foods Group |
| African Agriculture |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hf Foods and African Agriculture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and African Agriculture
The main advantage of trading using opposite Hf Foods and African Agriculture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, African Agriculture 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 African Agriculture will offset losses from the drop in African Agriculture's long position.| Hf Foods vs. Innovative Food Hldg | Hf Foods vs. G Willi Food International | Hf Foods vs. Calavo Growers | Hf Foods vs. The Chefs Warehouse |
| African Agriculture vs. Eastern Co | African Agriculture vs. Cebu Air ADR | African Agriculture vs. Hf Foods Group | African Agriculture vs. Porvair plc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |