Correlation Between Hyrican Informationssyst and US FOODS

Can any of the company-specific risk be diversified away by investing in both Hyrican Informationssyst and US FOODS 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 Hyrican Informationssyst and US FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hyrican Informationssysteme Aktiengesellschaft and US FOODS HOLDING, you can compare the effects of market volatilities on Hyrican Informationssyst and US FOODS 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 Hyrican Informationssyst with a short position of US FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyrican Informationssyst and US FOODS.

Diversification Opportunities for Hyrican Informationssyst and US FOODS

-0.07

Correlation Coefficient

Hyrican Informationssyst  US FOODS

Good diversification

The 3 months correlation between Hyrican and UFH is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Hyrican Informationssysteme Ak and US FOODS HOLDING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US FOODS HOLDING and Hyrican Informationssyst 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 Hyrican Informationssysteme Aktiengesellschaft are associated (or correlated) with US FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US FOODS HOLDING has no effect on the direction of Hyrican Informationssyst i.e., Hyrican Informationssyst and US FOODS go up and down completely randomly.

Pair Corralation between Hyrican Informationssyst and US FOODS

Assuming the 90 days horizon Hyrican Informationssysteme Aktiengesellschaft is expected to generate 0.22 times more return on investment than US FOODS. However, Hyrican Informationssysteme Aktiengesellschaft is 4.65 times less risky than US FOODS. It trades about -0.1 of its potential returns per unit of risk. US FOODS HOLDING is currently generating about -0.09 per unit of risk. If you would invest  530.00  in Hyrican Informationssysteme Aktiengesellschaft on December 19, 2024 and sell it today you would lose (10.00) from holding Hyrican Informationssysteme Aktiengesellschaft or give up 1.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Hyrican Informationssysteme Ak  vs.  US FOODS HOLDING

Hyrican Informationssyst

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hyrican Informationssysteme Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Hyrican Informationssyst is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

US FOODS HOLDING

Risk-Adjusted Performance

Very Weak

Over the last 90 days US FOODS HOLDING has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Hyrican Informationssyst and US FOODS

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

The idea behind Hyrican Informationssysteme Aktiengesellschaft and US FOODS HOLDING 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..