Correlation Between Hf Foods and Atlantic American
Can any of the company-specific risk be diversified away by investing in both Hf Foods and Atlantic American 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 Atlantic American 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 Atlantic American, you can compare the effects of market volatilities on Hf Foods and Atlantic American 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 Atlantic American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and Atlantic American.
Diversification Opportunities for Hf Foods and Atlantic American
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HFFG and Atlantic is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and Atlantic American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic American 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 Atlantic American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic American has no effect on the direction of Hf Foods i.e., Hf Foods and Atlantic American go up and down completely randomly.
Pair Corralation between Hf Foods and Atlantic American
Given the investment horizon of 90 days Hf Foods Group is expected to generate 0.73 times more return on investment than Atlantic American. However, Hf Foods Group is 1.37 times less risky than Atlantic American. It trades about 0.19 of its potential returns per unit of risk. Atlantic American is currently generating about -0.13 per unit of risk. If you would invest 337.00 in Hf Foods Group on September 19, 2024 and sell it today you would earn a total of 29.00 from holding Hf Foods Group or generate 8.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hf Foods Group vs. Atlantic American
Performance |
| Timeline |
| Hf Foods Group |
| Atlantic American |
Hf Foods and Atlantic American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and Atlantic American
The main advantage of trading using opposite Hf Foods and Atlantic American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, Atlantic American 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 Atlantic American will offset losses from the drop in Atlantic American'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 |
| Atlantic American vs. CNO Financial Group | Atlantic American vs. MetLife Preferred Stock | Atlantic American vs. FG Annuities Life | Atlantic American vs. Prudential PLC ADR |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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