Correlation Between Walgreens Boots and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Walgreens Boots 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 Walgreens Boots and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walgreens Boots Alliance and Hf Foods Group, you can compare the effects of market volatilities on Walgreens Boots 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 Walgreens Boots with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walgreens Boots and Hf Foods.
Diversification Opportunities for Walgreens Boots and Hf Foods
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walgreens and HFFG is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Walgreens Boots Alliance 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 Walgreens Boots 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 Walgreens Boots Alliance 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 Walgreens Boots i.e., Walgreens Boots and Hf Foods go up and down completely randomly.
Pair Corralation between Walgreens Boots and Hf Foods
Considering the 90-day investment horizon Walgreens Boots Alliance is expected to under-perform the Hf Foods. In addition to that, Walgreens Boots is 1.02 times more volatile than Hf Foods Group. It trades about -0.05 of its total potential returns per unit of risk. Hf Foods Group is currently generating about -0.05 per unit of volatility. If you would invest 536.00 in Hf Foods Group on November 9, 2024 and sell it today you would lose (272.00) from holding Hf Foods Group or give up 50.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walgreens Boots Alliance vs. Hf Foods Group
Performance |
| Timeline |
| Walgreens Boots Alliance |
| Hf Foods Group |
Walgreens Boots and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walgreens Boots and Hf Foods
The main advantage of trading using opposite Walgreens Boots and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walgreens Boots 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.| Walgreens Boots vs. PetMed Express | Walgreens Boots vs. 111 Inc | Walgreens Boots vs. China Jo Jo Drugstores | Walgreens Boots vs. High Tide |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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