Correlation Between SpartanNash and Hf Foods
Can any of the company-specific risk be diversified away by investing in both SpartanNash 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 SpartanNash and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpartanNash Co and Hf Foods Group, you can compare the effects of market volatilities on SpartanNash 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 SpartanNash with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpartanNash and Hf Foods.
Diversification Opportunities for SpartanNash and Hf Foods
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between SpartanNash and HFFG is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding SpartanNash Co 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 SpartanNash 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 SpartanNash Co 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 SpartanNash i.e., SpartanNash and Hf Foods go up and down completely randomly.
Pair Corralation between SpartanNash and Hf Foods
Given the investment horizon of 90 days SpartanNash Co is expected to under-perform the Hf Foods. But the stock apears to be less risky and, when comparing its historical volatility, SpartanNash Co is 2.42 times less risky than Hf Foods. The stock trades about -0.01 of its potential returns per unit of risk. The Hf Foods Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 344.00 in Hf Foods Group on January 18, 2025 and sell it today you would earn a total of 48.00 from holding Hf Foods Group or generate 13.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SpartanNash Co vs. Hf Foods Group
Performance |
| Timeline |
| SpartanNash |
| Hf Foods Group |
SpartanNash and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpartanNash and Hf Foods
The main advantage of trading using opposite SpartanNash and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpartanNash 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.| SpartanNash vs. Performance Food Group | SpartanNash vs. US Foods Holding | SpartanNash vs. Calavo Growers | SpartanNash vs. The Andersons |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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