Correlation Between Hf Foods and BJs Wholesale
Can any of the company-specific risk be diversified away by investing in both Hf Foods and BJs Wholesale 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 BJs Wholesale 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 BJs Wholesale Club, you can compare the effects of market volatilities on Hf Foods and BJs Wholesale 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 BJs Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and BJs Wholesale.
Diversification Opportunities for Hf Foods and BJs Wholesale
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HFFG and BJs is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and BJs Wholesale Club in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Wholesale Club 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 BJs Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Wholesale Club has no effect on the direction of Hf Foods i.e., Hf Foods and BJs Wholesale go up and down completely randomly.
Pair Corralation between Hf Foods and BJs Wholesale
Given the investment horizon of 90 days Hf Foods Group is expected to under-perform the BJs Wholesale. In addition to that, Hf Foods is 2.25 times more volatile than BJs Wholesale Club. It trades about -0.01 of its total potential returns per unit of risk. BJs Wholesale Club is currently generating about 0.11 per unit of volatility. If you would invest 6,458 in BJs Wholesale Club on August 26, 2024 and sell it today you would earn a total of 3,216 from holding BJs Wholesale Club or generate 49.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hf Foods Group vs. BJs Wholesale Club
Performance |
| Timeline |
| Hf Foods Group |
| BJs Wholesale Club |
Hf Foods and BJs Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and BJs Wholesale
The main advantage of trading using opposite Hf Foods and BJs Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, BJs Wholesale 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 BJs Wholesale will offset losses from the drop in BJs Wholesale'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 |
| BJs Wholesale vs. Hf Foods Group | BJs Wholesale vs. Innovative Food Hldg | BJs Wholesale vs. Calavo Growers | BJs Wholesale vs. The Chefs Warehouse |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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