Correlation Between Hf Foods and Chanson International
Can any of the company-specific risk be diversified away by investing in both Hf Foods and Chanson International 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 Chanson International 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 Chanson International Holding, you can compare the effects of market volatilities on Hf Foods and Chanson International 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 Chanson International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and Chanson International.
Diversification Opportunities for Hf Foods and Chanson International
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between HFFG and Chanson is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and Chanson International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chanson International 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 Chanson International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chanson International has no effect on the direction of Hf Foods i.e., Hf Foods and Chanson International go up and down completely randomly.
Pair Corralation between Hf Foods and Chanson International
Given the investment horizon of 90 days Hf Foods is expected to generate 2.93 times less return on investment than Chanson International. But when comparing it to its historical volatility, Hf Foods Group is 4.76 times less risky than Chanson International. It trades about 0.23 of its potential returns per unit of risk. Chanson International Holding is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 608.00 in Chanson International Holding on September 15, 2024 and sell it today you would earn a total of 133.00 from holding Chanson International Holding or generate 21.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hf Foods Group vs. Chanson International Holding
Performance |
| Timeline |
| Hf Foods Group |
| Chanson International |
Hf Foods and Chanson International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and Chanson International
The main advantage of trading using opposite Hf Foods and Chanson International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, Chanson International 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 Chanson International will offset losses from the drop in Chanson International's long position.| Hf Foods vs. Costco Wholesale Corp | Hf Foods vs. BJs Wholesale Club | Hf Foods vs. Dollar Tree | Hf Foods vs. Dollar General |
| Chanson International vs. Hf Foods Group | Chanson International vs. SunOpta | Chanson International vs. Alaska Air Group | Chanson International vs. Getty Images Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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