Correlation Between Hf Foods and Cencora
Can any of the company-specific risk be diversified away by investing in both Hf Foods and Cencora 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 Hf Foods and Cencora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hf Foods Group and Cencora, you can compare the effects of market volatilities on Hf Foods and Cencora 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 Hf Foods with a short position of Cencora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and Cencora.
Diversification Opportunities for Hf Foods and Cencora
Weak diversification
The 3 months correlation between HFFG and Cencora is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and Cencora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cencora and Hf Foods 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 Hf Foods Group are associated (or correlated) with Cencora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cencora has no effect on the direction of Hf Foods i.e., Hf Foods and Cencora go up and down completely randomly.
Pair Corralation between Hf Foods and Cencora
Given the investment horizon of 90 days Hf Foods Group is expected to under-perform the Cencora. In addition to that, Hf Foods is 3.28 times more volatile than Cencora. It trades about -0.02 of its total potential returns per unit of risk. Cencora is currently generating about 0.06 per unit of volatility. If you would invest 19,831 in Cencora on September 13, 2024 and sell it today you would earn a total of 3,358 from holding Cencora or generate 16.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hf Foods Group vs. Cencora
Performance |
Timeline |
Hf Foods Group |
Cencora |
Hf Foods and Cencora Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hf Foods and Cencora
The main advantage of trading using opposite Hf Foods and Cencora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, Cencora 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 Cencora will offset losses from the drop in Cencora's long position.Hf Foods vs. Costco Wholesale Corp | Hf Foods vs. BJs Wholesale Club | Hf Foods vs. Dollar Tree | Hf Foods vs. Dollar General |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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