Correlation Between Hf Foods and MQGAU

Can any of the company-specific risk be diversified away by investing in both Hf Foods and MQGAU 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 MQGAU 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 MQGAU 4654 27 MAR 29, you can compare the effects of market volatilities on Hf Foods and MQGAU 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 MQGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and MQGAU.

Diversification Opportunities for Hf Foods and MQGAU

0.54

Correlation Coefficient

Hf Foods  MQGAU

Very weak diversification

The 3 months correlation between HFFG and MQGAU is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and MQGAU 4654 27 MAR 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQGAU 4654 27 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 MQGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQGAU 4654 27 has no effect on the direction of Hf Foods i.e., Hf Foods and MQGAU go up and down completely randomly.

Pair Corralation between Hf Foods and MQGAU

Given the investment horizon of 90 days Hf Foods Group is expected to under-perform the MQGAU. In addition to that, Hf Foods is 9.58 times more volatile than MQGAU 4654 27 MAR 29. It trades about -0.45 of its total potential returns per unit of risk. MQGAU 4654 27 MAR 29 is currently generating about 0.04 per unit of volatility. If you would invest  9,929  in MQGAU 4654 27 MAR 29 on December 4, 2024 and sell it today you would earn a total of  37.00  from holding MQGAU 4654 27 MAR 29 or generate 0.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	55.0%
Values	Daily Returns

Hf Foods Group  vs.  MQGAU 4654 27 MAR 29

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 inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

MQGAU 4654 27

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MQGAU 4654 27 MAR 29 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, MQGAU is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hf Foods and MQGAU

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

The idea behind Hf Foods Group and MQGAU 4654 27 MAR 29 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.