Correlation Between Hf Foods and 191216DE7
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By analyzing existing cross correlation between Hf Foods Group and COCA COLA CO, you can compare the effects of market volatilities on Hf Foods and 191216DE7 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 191216DE7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and 191216DE7.
Diversification Opportunities for Hf Foods and 191216DE7
Very good diversification
The 3 months correlation between HFFG and 191216DE7 is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and COCA COLA CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A CO 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 191216DE7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A CO has no effect on the direction of Hf Foods i.e., Hf Foods and 191216DE7 go up and down completely randomly.
Pair Corralation between Hf Foods and 191216DE7
Given the investment horizon of 90 days Hf Foods Group is expected to under-perform the 191216DE7. In addition to that, Hf Foods is 3.81 times more volatile than COCA COLA CO. It trades about -0.06 of its total potential returns per unit of risk. COCA COLA CO is currently generating about -0.12 per unit of volatility. If you would invest 8,275 in COCA COLA CO on September 24, 2024 and sell it today you would lose (151.00) from holding COCA COLA CO or give up 1.82% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Hf Foods Group vs. COCA COLA CO
Performance |
Timeline |
Hf Foods Group |
COCA A CO |
Hf Foods and 191216DE7 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hf Foods and 191216DE7
The main advantage of trading using opposite Hf Foods and 191216DE7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, 191216DE7 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 191216DE7 will offset losses from the drop in 191216DE7's long position.The idea behind Hf Foods Group and COCA COLA CO 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.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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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