Correlation Between Natural Grocers and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Natural Grocers 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 Natural Grocers and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natural Grocers by and Hf Foods Group, you can compare the effects of market volatilities on Natural Grocers 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 Natural Grocers with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Grocers and Hf Foods.
Diversification Opportunities for Natural Grocers and Hf Foods
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Natural and HFFG is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Natural Grocers by 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 Natural Grocers 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 Natural Grocers by 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 Natural Grocers i.e., Natural Grocers and Hf Foods go up and down completely randomly.
Pair Corralation between Natural Grocers and Hf Foods
Given the investment horizon of 90 days Natural Grocers by is expected to generate 3.11 times more return on investment than Hf Foods. However, Natural Grocers is 3.11 times more volatile than Hf Foods Group. It trades about 0.41 of its potential returns per unit of risk. Hf Foods Group is currently generating about 0.09 per unit of risk. If you would invest 2,758 in Natural Grocers by on August 30, 2024 and sell it today you would earn a total of 1,863 from holding Natural Grocers by or generate 67.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natural Grocers by vs. Hf Foods Group
Performance |
| Timeline |
| Natural Grocers by |
| Hf Foods Group |
Natural Grocers and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natural Grocers and Hf Foods
The main advantage of trading using opposite Natural Grocers and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natural Grocers 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.| Natural Grocers vs. Weis Markets | Natural Grocers vs. Ingles Markets Incorporated | Natural Grocers vs. Sendas Distribuidora SA | Natural Grocers vs. Grocery Outlet Holding |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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