Correlation Between Hf Foods and Waste Management
Can any of the company-specific risk be diversified away by investing in both Hf Foods and Waste Management 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 Waste Management 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 Waste Management, you can compare the effects of market volatilities on Hf Foods and Waste Management 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 Waste Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and Waste Management.
Diversification Opportunities for Hf Foods and Waste Management
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HFFG and Waste is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and Waste Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waste Management 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 Waste Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waste Management has no effect on the direction of Hf Foods i.e., Hf Foods and Waste Management go up and down completely randomly.
Pair Corralation between Hf Foods and Waste Management
Given the investment horizon of 90 days Hf Foods Group is expected to generate 3.41 times more return on investment than Waste Management. However, Hf Foods is 3.41 times more volatile than Waste Management. It trades about 0.04 of its potential returns per unit of risk. Waste Management is currently generating about 0.09 per unit of risk. If you would invest 338.00 in Hf Foods Group on September 1, 2024 and sell it today you would earn a total of 40.00 from holding Hf Foods Group or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hf Foods Group vs. Waste Management
Performance |
| Timeline |
| Hf Foods Group |
| Waste Management |
Hf Foods and Waste Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and Waste Management
The main advantage of trading using opposite Hf Foods and Waste Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, Waste Management 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 Waste Management will offset losses from the drop in Waste Management'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 |
| Waste Management vs. CRA International | Waste Management vs. ICF International | Waste Management vs. Forrester Research | Waste Management vs. Huron Consulting Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stocks Directory Find actively traded stocks across global markets |