Correlation Between Lery Seafood and HF FOODS
Can any of the company-specific risk be diversified away by investing in both Lery Seafood 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 Lery Seafood and HF FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lery Seafood Group and HF FOODS GRP, you can compare the effects of market volatilities on Lery Seafood 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 Lery Seafood with a short position of HF FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and HF FOODS.
Diversification Opportunities for Lery Seafood and HF FOODS
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lery and 3GX is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and HF FOODS GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF FOODS GRP and Lery Seafood 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 Lery Seafood Group 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 GRP has no effect on the direction of Lery Seafood i.e., Lery Seafood and HF FOODS go up and down completely randomly.
Pair Corralation between Lery Seafood and HF FOODS
Assuming the 90 days horizon Lery Seafood Group is expected to generate 0.67 times more return on investment than HF FOODS. However, Lery Seafood Group is 1.49 times less risky than HF FOODS. It trades about 0.34 of its potential returns per unit of risk. HF FOODS GRP is currently generating about -0.43 per unit of risk. If you would invest 405.00 in Lery Seafood Group on October 20, 2024 and sell it today you would earn a total of 35.00 from holding Lery Seafood Group or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lery Seafood Group vs. HF FOODS GRP
Performance |
| Timeline |
| Lery Seafood Group |
| HF FOODS GRP |
Lery Seafood and HF FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lery Seafood and HF FOODS
The main advantage of trading using opposite Lery Seafood and HF FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood 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's long position.| Lery Seafood vs. Mowi ASA | Lery Seafood vs. LEROY SEAFOOD GRUNSPADR | Lery Seafood vs. Yihai International Holding | Lery Seafood vs. Lery Seafood Group |
| HF FOODS vs. Mitsui Chemicals | HF FOODS vs. Silicon Motion Technology | HF FOODS vs. Sanyo Chemical Industries | HF FOODS vs. INDO RAMA SYNTHETIC |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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