Correlation Between AUSTEVOLL SEAFOOD and HF FOODS
Can any of the company-specific risk be diversified away by investing in both AUSTEVOLL 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 AUSTEVOLL 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 AUSTEVOLL SEAFOOD and HF FOODS GRP, you can compare the effects of market volatilities on AUSTEVOLL 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 AUSTEVOLL SEAFOOD with a short position of HF FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUSTEVOLL SEAFOOD and HF FOODS.
Diversification Opportunities for AUSTEVOLL SEAFOOD and HF FOODS
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AUSTEVOLL and 3GX is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding AUSTEVOLL SEAFOOD 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 AUSTEVOLL 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 AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD i.e., AUSTEVOLL SEAFOOD and HF FOODS go up and down completely randomly.
Pair Corralation between AUSTEVOLL SEAFOOD and HF FOODS
Assuming the 90 days trading horizon AUSTEVOLL SEAFOOD is expected to generate 0.62 times more return on investment than HF FOODS. However, AUSTEVOLL SEAFOOD is 1.61 times less risky than HF FOODS. It trades about 0.04 of its potential returns per unit of risk. HF FOODS GRP is currently generating about -0.49 per unit of risk. If you would invest 897.00 in AUSTEVOLL SEAFOOD on November 27, 2024 and sell it today you would earn a total of 9.00 from holding AUSTEVOLL SEAFOOD or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUSTEVOLL SEAFOOD vs. HF FOODS GRP
Performance |
| Timeline |
| AUSTEVOLL SEAFOOD |
| HF FOODS GRP |
AUSTEVOLL SEAFOOD and HF FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUSTEVOLL SEAFOOD and HF FOODS
The main advantage of trading using opposite AUSTEVOLL SEAFOOD and HF FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUSTEVOLL 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.| AUSTEVOLL SEAFOOD vs. KAUFMAN ET BROAD | AUSTEVOLL SEAFOOD vs. EVS Broadcast Equipment | AUSTEVOLL SEAFOOD vs. Cairo Communication SpA | AUSTEVOLL SEAFOOD vs. ScanSource |
| HF FOODS vs. Playtech plc | HF FOODS vs. Playa Hotels Resorts | HF FOODS vs. SLIGRO FOOD GROUP | HF FOODS vs. Nomad Foods |
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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