Correlation Between Hf Foods and Bluerock Homes
Can any of the company-specific risk be diversified away by investing in both Hf Foods and Bluerock Homes 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 Bluerock Homes 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 Bluerock Homes Trust, you can compare the effects of market volatilities on Hf Foods and Bluerock Homes 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 Bluerock Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and Bluerock Homes.
Diversification Opportunities for Hf Foods and Bluerock Homes
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between HFFG and Bluerock is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and Bluerock Homes Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluerock Homes Trust 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 Bluerock Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluerock Homes Trust has no effect on the direction of Hf Foods i.e., Hf Foods and Bluerock Homes go up and down completely randomly.
Pair Corralation between Hf Foods and Bluerock Homes
Given the investment horizon of 90 days Hf Foods Group is expected to generate 2.0 times more return on investment than Bluerock Homes. However, Hf Foods is 2.0 times more volatile than Bluerock Homes Trust. It trades about 0.03 of its potential returns per unit of risk. Bluerock Homes Trust is currently generating about -0.06 per unit of risk. If you would invest 338.00 in Hf Foods Group on August 30, 2024 and sell it today you would earn a total of 23.00 from holding Hf Foods Group or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hf Foods Group vs. Bluerock Homes Trust
Performance |
| Timeline |
| Hf Foods Group |
| Bluerock Homes Trust |
Hf Foods and Bluerock Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and Bluerock Homes
The main advantage of trading using opposite Hf Foods and Bluerock Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, Bluerock Homes 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 Bluerock Homes will offset losses from the drop in Bluerock Homes' 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 |
| Bluerock Homes vs. Re Max Holding | Bluerock Homes vs. Maui Land Pineapple | Bluerock Homes vs. Redfin Corp | Bluerock Homes vs. Real Brokerage |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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