Correlation Between Hf Foods and Enel Chile
Can any of the company-specific risk be diversified away by investing in both Hf Foods and Enel Chile 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 Enel Chile 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 Enel Chile SA, you can compare the effects of market volatilities on Hf Foods and Enel Chile 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 Enel Chile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and Enel Chile.
Diversification Opportunities for Hf Foods and Enel Chile
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HFFG and Enel is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and Enel Chile SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel Chile SA 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 Enel Chile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel Chile SA has no effect on the direction of Hf Foods i.e., Hf Foods and Enel Chile go up and down completely randomly.
Pair Corralation between Hf Foods and Enel Chile
Given the investment horizon of 90 days Hf Foods Group is expected to under-perform the Enel Chile. In addition to that, Hf Foods is 1.97 times more volatile than Enel Chile SA. It trades about 0.0 of its total potential returns per unit of risk. Enel Chile SA is currently generating about 0.0 per unit of volatility. If you would invest 299.00 in Enel Chile SA on September 14, 2024 and sell it today you would lose (11.00) from holding Enel Chile SA or give up 3.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hf Foods Group vs. Enel Chile SA
Performance |
| Timeline |
| Hf Foods Group |
| Enel Chile SA |
Hf Foods and Enel Chile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and Enel Chile
The main advantage of trading using opposite Hf Foods and Enel Chile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, Enel Chile 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 Enel Chile will offset losses from the drop in Enel Chile'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 |
| Enel Chile vs. Centrais Eltricas Brasileiras | Enel Chile vs. Korea Electric Power | Enel Chile vs. Central Puerto SA | Enel Chile vs. CMS Energy |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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