Correlation Between Hilton Food and Mercantile Investment
Can any of the company-specific risk be diversified away by investing in both Hilton Food and Mercantile 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 Hilton Food and Mercantile Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hilton Food Group and The Mercantile Investment, you can compare the effects of market volatilities on Hilton Food and Mercantile 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 Hilton Food with a short position of Mercantile Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Food and Mercantile Investment.
Diversification Opportunities for Hilton Food and Mercantile Investment
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hilton and Mercantile is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Food Group and The Mercantile Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Mercantile Investment and Hilton Food 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 Hilton Food Group are associated (or correlated) with Mercantile Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Mercantile Investment has no effect on the direction of Hilton Food i.e., Hilton Food and Mercantile Investment go up and down completely randomly.
Pair Corralation between Hilton Food and Mercantile Investment
Assuming the 90 days trading horizon Hilton Food Group is expected to generate 0.64 times more return on investment than Mercantile Investment. However, Hilton Food Group is 1.57 times less risky than Mercantile Investment. It trades about 0.0 of its potential returns per unit of risk. The Mercantile Investment is currently generating about -0.01 per unit of risk. If you would invest 88,800 in Hilton Food Group on January 23, 2025 and sell it today you would lose (100.00) from holding Hilton Food Group or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hilton Food Group vs. The Mercantile Investment
Performance |
| Timeline |
| Hilton Food Group |
| The Mercantile Investment |
Hilton Food and Mercantile Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hilton Food and Mercantile Investment
The main advantage of trading using opposite Hilton Food and Mercantile Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Food position performs unexpectedly, Mercantile 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 Mercantile Investment will offset losses from the drop in Mercantile Investment's long position.| Hilton Food vs. Zinc Media Group | Hilton Food vs. Bigblu Broadband PLC | Hilton Food vs. JD Sports Fashion | Hilton Food vs. Ubisoft Entertainment |
| Mercantile Investment vs. Metals Exploration Plc | Mercantile Investment vs. Zegona Communications Plc | Mercantile Investment vs. Central Asia Metals | Mercantile Investment vs. Jacquet Metal Service |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |