Correlation Between Hf Foods and Aegon Funding
Can any of the company-specific risk be diversified away by investing in both Hf Foods and Aegon Funding 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 Aegon Funding 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 Aegon Funding, you can compare the effects of market volatilities on Hf Foods and Aegon Funding 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 Aegon Funding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and Aegon Funding.
Diversification Opportunities for Hf Foods and Aegon Funding
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HFFG and Aegon is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and Aegon Funding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon Funding 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 Aegon Funding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegon Funding has no effect on the direction of Hf Foods i.e., Hf Foods and Aegon Funding go up and down completely randomly.
Pair Corralation between Hf Foods and Aegon Funding
Given the investment horizon of 90 days Hf Foods Group is expected to generate 1.89 times more return on investment than Aegon Funding. However, Hf Foods is 1.89 times more volatile than Aegon Funding. It trades about 0.23 of its potential returns per unit of risk. Aegon Funding is currently generating about -0.06 per unit of risk. If you would invest 350.00 in Hf Foods Group on September 12, 2024 and sell it today you would earn a total of 33.00 from holding Hf Foods Group or generate 9.43% 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. Aegon Funding
Performance |
| Timeline |
| Hf Foods Group |
| Aegon Funding |
Hf Foods and Aegon Funding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and Aegon Funding
The main advantage of trading using opposite Hf Foods and Aegon Funding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, Aegon Funding 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 Aegon Funding will offset losses from the drop in Aegon Funding'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 |
| Aegon Funding vs. SNDL Inc | Aegon Funding vs. SunOpta | Aegon Funding vs. Bridgford Foods | Aegon Funding vs. Hf Foods Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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