Correlation Between Hf Foods and China Southern
Can any of the company-specific risk be diversified away by investing in both Hf Foods and China Southern 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 China Southern 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 China Southern Airlines, you can compare the effects of market volatilities on Hf Foods and China Southern 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 China Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and China Southern.
Diversification Opportunities for Hf Foods and China Southern
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HFFG and China is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and China Southern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Southern Airlines 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 China Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Southern Airlines has no effect on the direction of Hf Foods i.e., Hf Foods and China Southern go up and down completely randomly.
Pair Corralation between Hf Foods and China Southern
If you would invest 349.00 in Hf Foods Group on August 30, 2024 and sell it today you would earn a total of 12.00 from holding Hf Foods Group or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Hf Foods Group vs. China Southern Airlines
Performance |
| Timeline |
| Hf Foods Group |
| China Southern Airlines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hf Foods and China Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and China Southern
The main advantage of trading using opposite Hf Foods and China Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, China Southern 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 China Southern will offset losses from the drop in China Southern'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 |
| China Southern vs. LAir Liquide SA | China Southern vs. Corporacion America Airports | China Southern vs. Mayfair Gold Corp | China Southern vs. Insteel Industries |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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