Correlation Between Rivian Automotive and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Rivian Automotive 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 Rivian Automotive and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rivian Automotive and Hf Foods Group, you can compare the effects of market volatilities on Rivian Automotive 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 Rivian Automotive with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rivian Automotive and Hf Foods.
Diversification Opportunities for Rivian Automotive and Hf Foods
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rivian and HFFG is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Rivian Automotive 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 Rivian Automotive 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 Rivian Automotive 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 Rivian Automotive i.e., Rivian Automotive and Hf Foods go up and down completely randomly.
Pair Corralation between Rivian Automotive and Hf Foods
Given the investment horizon of 90 days Rivian Automotive is expected to generate 1.13 times more return on investment than Hf Foods. However, Rivian Automotive is 1.13 times more volatile than Hf Foods Group. It trades about 0.07 of its potential returns per unit of risk. Hf Foods Group is currently generating about 0.06 per unit of risk. If you would invest 1,088 in Rivian Automotive on September 12, 2024 and sell it today you would earn a total of 318.00 from holding Rivian Automotive or generate 29.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rivian Automotive vs. Hf Foods Group
Performance |
| Timeline |
| Rivian Automotive |
| Hf Foods Group |
Rivian Automotive and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rivian Automotive and Hf Foods
The main advantage of trading using opposite Rivian Automotive and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rivian Automotive 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.| Rivian Automotive vs. Nio Class A | Rivian Automotive vs. Xpeng Inc | Rivian Automotive vs. Tesla Inc | Rivian Automotive vs. Li Auto |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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