Correlation Between Umpqua Holdings and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Umpqua Holdings 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 Umpqua Holdings and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Umpqua Holdings and Hf Foods Group, you can compare the effects of market volatilities on Umpqua Holdings 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 Umpqua Holdings with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Umpqua Holdings and Hf Foods.
Diversification Opportunities for Umpqua Holdings and Hf Foods
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Umpqua and HFFG is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Umpqua Holdings 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 Umpqua Holdings 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 Umpqua Holdings 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 Umpqua Holdings i.e., Umpqua Holdings and Hf Foods go up and down completely randomly.
Pair Corralation between Umpqua Holdings and Hf Foods
If you would invest 333.00 in Hf Foods Group on September 4, 2024 and sell it today you would earn a total of 37.00 from holding Hf Foods Group or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Umpqua Holdings vs. Hf Foods Group
Performance |
| Timeline |
| Umpqua Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hf Foods Group |
Umpqua Holdings and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Umpqua Holdings and Hf Foods
The main advantage of trading using opposite Umpqua Holdings and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Umpqua Holdings 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.| Umpqua Holdings vs. Hf Foods Group | Umpqua Holdings vs. Waters | Umpqua Holdings vs. Amgen Inc | Umpqua Holdings vs. Alvotech |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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