Correlation Between Hf Foods and Coupang LLC
Can any of the company-specific risk be diversified away by investing in both Hf Foods and Coupang LLC 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 Coupang LLC 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 Coupang LLC, you can compare the effects of market volatilities on Hf Foods and Coupang LLC 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 Coupang LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and Coupang LLC.
Diversification Opportunities for Hf Foods and Coupang LLC
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HFFG and Coupang is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and Coupang LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coupang LLC 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 Coupang LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coupang LLC has no effect on the direction of Hf Foods i.e., Hf Foods and Coupang LLC go up and down completely randomly.
Pair Corralation between Hf Foods and Coupang LLC
Given the investment horizon of 90 days Hf Foods is expected to generate 4.29 times less return on investment than Coupang LLC. In addition to that, Hf Foods is 1.54 times more volatile than Coupang LLC. It trades about 0.01 of its total potential returns per unit of risk. Coupang LLC is currently generating about 0.06 per unit of volatility. If you would invest 1,602 in Coupang LLC on August 31, 2024 and sell it today you would earn a total of 934.00 from holding Coupang LLC or generate 58.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hf Foods Group vs. Coupang LLC
Performance |
| Timeline |
| Hf Foods Group |
| Coupang LLC |
Hf Foods and Coupang LLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and Coupang LLC
The main advantage of trading using opposite Hf Foods and Coupang LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, Coupang LLC 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 Coupang LLC will offset losses from the drop in Coupang LLC'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 |
| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
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.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |