Correlation Between Hf Foods and Trugolf
Can any of the company-specific risk be diversified away by investing in both Hf Foods and Trugolf 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 Trugolf 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 Trugolf, you can compare the effects of market volatilities on Hf Foods and Trugolf 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 Trugolf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and Trugolf.
Diversification Opportunities for Hf Foods and Trugolf
Very good diversification
The 3 months correlation between HFFG and Trugolf is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and Trugolf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trugolf 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 Trugolf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trugolf has no effect on the direction of Hf Foods i.e., Hf Foods and Trugolf go up and down completely randomly.
Pair Corralation between Hf Foods and Trugolf
Given the investment horizon of 90 days Hf Foods Group is expected to generate 0.25 times more return on investment than Trugolf. However, Hf Foods Group is 4.0 times less risky than Trugolf. It trades about 0.23 of its potential returns per unit of risk. Trugolf is currently generating about -0.09 per unit of risk. If you would invest 342.00 in Hf Foods Group on September 1, 2024 and sell it today you would earn a total of 36.00 from holding Hf Foods Group or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hf Foods Group vs. Trugolf
Performance |
| Timeline |
| Hf Foods Group |
| Trugolf |
Hf Foods and Trugolf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and Trugolf
The main advantage of trading using opposite Hf Foods and Trugolf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, Trugolf 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 Trugolf will offset losses from the drop in Trugolf'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 |
| Trugolf vs. SunLink Health Systems | Trugolf vs. SunOpta | Trugolf vs. Pool Corporation | Trugolf vs. Olympic Steel |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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