Correlation Between Hf Foods and COMSovereign Holding
Can any of the company-specific risk be diversified away by investing in both Hf Foods and COMSovereign Holding 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 COMSovereign Holding 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 COMSovereign Holding Corp, you can compare the effects of market volatilities on Hf Foods and COMSovereign Holding 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 COMSovereign Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and COMSovereign Holding.
Diversification Opportunities for Hf Foods and COMSovereign Holding
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between HFFG and COMSovereign is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and COMSovereign Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMSovereign Holding Corp 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 COMSovereign Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMSovereign Holding Corp has no effect on the direction of Hf Foods i.e., Hf Foods and COMSovereign Holding go up and down completely randomly.
Pair Corralation between Hf Foods and COMSovereign Holding
Given the investment horizon of 90 days Hf Foods is expected to generate 14.75 times less return on investment than COMSovereign Holding. But when comparing it to its historical volatility, Hf Foods Group is 2.58 times less risky than COMSovereign Holding. It trades about 0.02 of its potential returns per unit of risk. COMSovereign Holding Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 100.00 in COMSovereign Holding Corp on September 14, 2024 and sell it today you would earn a total of 115.00 from holding COMSovereign Holding Corp or generate 115.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 28.89% |
| Values | Daily Returns |
Hf Foods Group vs. COMSovereign Holding Corp
Performance |
| Timeline |
| Hf Foods Group |
| COMSovereign Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hf Foods and COMSovereign Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and COMSovereign Holding
The main advantage of trading using opposite Hf Foods and COMSovereign Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, COMSovereign Holding 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 COMSovereign Holding will offset losses from the drop in COMSovereign Holding'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 |
| COMSovereign Holding vs. NH Foods Ltd | COMSovereign Holding vs. Hf Foods Group | COMSovereign Holding vs. BBB Foods | COMSovereign Holding vs. Bridgford Foods |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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