Correlation Between Hf Foods and Village Super
Can any of the company-specific risk be diversified away by investing in both Hf Foods and Village Super 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 Village Super 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 Village Super Market, you can compare the effects of market volatilities on Hf Foods and Village Super 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 Village Super. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and Village Super.
Diversification Opportunities for Hf Foods and Village Super
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HFFG and Village is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and Village Super Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Village Super Market 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 Village Super. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Village Super Market has no effect on the direction of Hf Foods i.e., Hf Foods and Village Super go up and down completely randomly.
Pair Corralation between Hf Foods and Village Super
Given the investment horizon of 90 days Hf Foods Group is expected to generate 1.78 times more return on investment than Village Super. However, Hf Foods is 1.78 times more volatile than Village Super Market. It trades about 0.04 of its potential returns per unit of risk. Village Super Market is currently generating about 0.06 per unit of risk. If you would invest 304.00 in Hf Foods Group on September 24, 2024 and sell it today you would earn a total of 42.00 from holding Hf Foods Group or generate 13.82% 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. Village Super Market
Performance |
Timeline |
Hf Foods Group |
Village Super Market |
Hf Foods and Village Super Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hf Foods and Village Super
The main advantage of trading using opposite Hf Foods and Village Super positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, Village Super 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 Village Super will offset losses from the drop in Village Super's long position.Hf Foods vs. Krispy Kreme | Hf Foods vs. Sendas Distribuidora SA | Hf Foods vs. Village Super Market | Hf Foods vs. Ocado Group plc |
Village Super vs. Krispy Kreme | Village Super vs. Sendas Distribuidora SA | Village Super vs. Ocado Group plc |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |