Correlation Between Supercom and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Supercom 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 Supercom and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supercom and Hf Foods Group, you can compare the effects of market volatilities on Supercom 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 Supercom with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercom and Hf Foods.
Diversification Opportunities for Supercom and Hf Foods
Weak diversification
The 3 months correlation between Supercom and HFFG is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Supercom 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 Supercom 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 Supercom 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 Supercom i.e., Supercom and Hf Foods go up and down completely randomly.
Pair Corralation between Supercom and Hf Foods
Given the investment horizon of 90 days Supercom is expected to generate 2.05 times more return on investment than Hf Foods. However, Supercom is 2.05 times more volatile than Hf Foods Group. It trades about 0.0 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 700.00 in Supercom on September 4, 2024 and sell it today you would lose (358.00) from holding Supercom or give up 51.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supercom vs. Hf Foods Group
Performance |
| Timeline |
| Supercom |
| Hf Foods Group |
Supercom and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supercom and Hf Foods
The main advantage of trading using opposite Supercom and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercom 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.| Supercom vs. Zedcor Inc | Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI Co |
| 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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