Correlation Between Oasis Hotel and Hf Foods

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Can any of the company-specific risk be diversified away by investing in both Oasis Hotel and Hf 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 Oasis Hotel and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasis Hotel Resort and Hf Foods Group, you can compare the effects of market volatilities on Oasis Hotel and Hf 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 Oasis Hotel with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Hotel and Hf Foods.

Diversification Opportunities for Oasis Hotel and Hf Foods

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Oasis and HFFG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oasis Hotel Resort and Hf Foods Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hf Foods Group and Oasis Hotel 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 Oasis Hotel Resort are associated (or correlated) with Hf Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hf Foods Group has no effect on the direction of Oasis Hotel i.e., Oasis Hotel and Hf Foods go up and down completely randomly.

Pair Corralation between Oasis Hotel and Hf Foods

If you would invest  337.00  in Hf Foods Group on September 18, 2024 and sell it today you would earn a total of  39.00  from holding Hf Foods Group or generate 11.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Oasis Hotel Resort  vs.  Hf Foods Group

 Performance 
       Timeline  
Oasis Hotel Resort 

Risk-Adjusted Performance

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Weak
 
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Very Weak
Over the last 90 days Oasis Hotel Resort has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Oasis Hotel is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
Hf Foods Group 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Hf Foods Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Hf Foods may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Oasis Hotel and Hf Foods Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Oasis Hotel and Hf Foods

The main advantage of trading using opposite Oasis Hotel and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasis Hotel position performs unexpectedly, Hf 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 Hf Foods will offset losses from the drop in Hf Foods' long position.
The idea behind Oasis Hotel Resort and Hf Foods 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.
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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