Correlation Between KVH Industries and Hf Foods
Can any of the company-specific risk be diversified away by investing in both KVH Industries 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 KVH Industries and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KVH Industries and Hf Foods Group, you can compare the effects of market volatilities on KVH Industries 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 KVH Industries with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and Hf Foods.
Diversification Opportunities for KVH Industries and Hf Foods
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KVH and HFFG is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries 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 KVH Industries 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 KVH Industries 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 KVH Industries i.e., KVH Industries and Hf Foods go up and down completely randomly.
Pair Corralation between KVH Industries and Hf Foods
Given the investment horizon of 90 days KVH Industries is expected to generate 0.65 times more return on investment than Hf Foods. However, KVH Industries is 1.55 times less risky than Hf Foods. It trades about 0.04 of its potential returns per unit of risk. Hf Foods Group is currently generating about -0.01 per unit of risk. If you would invest 501.00 in KVH Industries on September 4, 2024 and sell it today you would earn a total of 83.00 from holding KVH Industries or generate 16.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KVH Industries vs. Hf Foods Group
Performance |
| Timeline |
| KVH Industries |
| Hf Foods Group |
KVH Industries and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and Hf Foods
The main advantage of trading using opposite KVH Industries and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries 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.| KVH Industries vs. Telesat Corp | KVH Industries vs. Comtech Telecommunications Corp | KVH Industries vs. Knowles Cor | KVH Industries vs. Ituran Location and |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stocks Directory Find actively traded stocks across global markets |