Correlation Between Hf Foods and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both Hf Foods and Fidus Investment 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 Fidus Investment 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 Fidus Investment Corp, you can compare the effects of market volatilities on Hf Foods and Fidus Investment 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 Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and Fidus Investment.
Diversification Opportunities for Hf Foods and Fidus Investment
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HFFG and Fidus is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and Fidus Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidus Investment 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 Fidus Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidus Investment Corp has no effect on the direction of Hf Foods i.e., Hf Foods and Fidus Investment go up and down completely randomly.
Pair Corralation between Hf Foods and Fidus Investment
Given the investment horizon of 90 days Hf Foods is expected to generate 1.64 times less return on investment than Fidus Investment. In addition to that, Hf Foods is 4.16 times more volatile than Fidus Investment Corp. It trades about 0.01 of its total potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.08 per unit of volatility. If you would invest 1,513 in Fidus Investment Corp on August 26, 2024 and sell it today you would earn a total of 584.00 from holding Fidus Investment Corp or generate 38.6% 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. Fidus Investment Corp
Performance |
| Timeline |
| Hf Foods Group |
| Fidus Investment Corp |
Hf Foods and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and Fidus Investment
The main advantage of trading using opposite Hf Foods and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, Fidus Investment 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 Fidus Investment will offset losses from the drop in Fidus Investment'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 |
| Fidus Investment vs. PowerUp Acquisition Corp | Fidus Investment vs. Aurora Innovation | Fidus Investment vs. HUMANA INC | Fidus Investment vs. Aquagold International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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