Correlation Between Hf Foods and APACHE
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By analyzing existing cross correlation between Hf Foods Group and APACHE P 525, you can compare the effects of market volatilities on Hf Foods and APACHE 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 APACHE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and APACHE.
Diversification Opportunities for Hf Foods and APACHE
Very good diversification
The 3 months correlation between HFFG and APACHE is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and APACHE P 525 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APACHE P 525 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 APACHE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APACHE P 525 has no effect on the direction of Hf Foods i.e., Hf Foods and APACHE go up and down completely randomly.
Pair Corralation between Hf Foods and APACHE
Given the investment horizon of 90 days Hf Foods Group is expected to generate 1.04 times more return on investment than APACHE. However, Hf Foods is 1.04 times more volatile than APACHE P 525. It trades about 0.25 of its potential returns per unit of risk. APACHE P 525 is currently generating about -0.1 per unit of risk. If you would invest 333.00 in Hf Foods Group on September 4, 2024 and sell it today you would earn a total of 37.00 from holding Hf Foods Group or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Hf Foods Group vs. APACHE P 525
Performance |
| Timeline |
| Hf Foods Group |
| APACHE P 525 |
Hf Foods and APACHE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and APACHE
The main advantage of trading using opposite Hf Foods and APACHE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, APACHE 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 APACHE will offset losses from the drop in APACHE'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 |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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