Correlation Between Integral and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Integral and Hf Foods 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 Integral and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integral Ad Science and Hf Foods Group, you can compare the effects of market volatilities on Integral and Hf Foods 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 Integral with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Hf Foods.
Diversification Opportunities for Integral and Hf Foods
Average diversification
The 3 months correlation between Integral and HFFG is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Hf Foods Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hf Foods Group and Integral 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 Integral Ad Science are associated (or correlated) with Hf Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hf Foods Group has no effect on the direction of Integral i.e., Integral and Hf Foods go up and down completely randomly.
Pair Corralation between Integral and Hf Foods
Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the Hf Foods. In addition to that, Integral is 1.09 times more volatile than Hf Foods Group. It trades about -0.03 of its total potential returns per unit of risk. Hf Foods Group is currently generating about 0.01 per unit of volatility. If you would invest 388.00 in Hf Foods Group on August 25, 2024 and sell it today you would lose (34.00) from holding Hf Foods Group or give up 8.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integral Ad Science vs. Hf Foods Group
Performance |
| Timeline |
| Integral Ad Science |
| Hf Foods Group |
Integral and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and Hf Foods
The main advantage of trading using opposite Integral and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, Hf Foods 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 Hf Foods will offset losses from the drop in Hf Foods' long position.The idea behind Integral Ad Science and Hf Foods Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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