Correlation Between Hf Foods and Daiwa Securities

Can any of the company-specific risk be diversified away by investing in both Hf Foods and Daiwa Securities 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 Daiwa Securities 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 Daiwa Securities Group, you can compare the effects of market volatilities on Hf Foods and Daiwa Securities 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 Daiwa Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and Daiwa Securities.

Diversification Opportunities for Hf Foods and Daiwa Securities

-0.53

Correlation Coefficient

Hf Foods  Daiwa Securities

Excellent diversification

The 3 months correlation between HFFG and Daiwa is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and Daiwa Securities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daiwa Securities 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 Daiwa Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daiwa Securities has no effect on the direction of Hf Foods i.e., Hf Foods and Daiwa Securities go up and down completely randomly.

Pair Corralation between Hf Foods and Daiwa Securities

Given the investment horizon of 90 days Hf Foods Group is expected to under-perform the Daiwa Securities. In addition to that, Hf Foods is 3.27 times more volatile than Daiwa Securities Group. It trades about -0.03 of its total potential returns per unit of risk. Daiwa Securities Group is currently generating about 0.11 per unit of volatility. If you would invest  650.00  in Daiwa Securities Group on December 19, 2024 and sell it today you would earn a total of  67.00  from holding Daiwa Securities Group or generate 10.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Hf Foods Group  vs.  Daiwa Securities Group

Hf Foods Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hf Foods Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Daiwa Securities

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Daiwa Securities Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Daiwa Securities may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Hf Foods and Daiwa Securities

The main advantage of trading using opposite Hf Foods and Daiwa Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, Daiwa Securities 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 Daiwa Securities will offset losses from the drop in Daiwa Securities' long position.

The idea behind Hf Foods Group and Daiwa Securities Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.