Correlation Between 65339KCA6 and Hf Foods

Can any of the company-specific risk be diversified away by investing in both 65339KCA6 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 65339KCA6 and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NEE 3 15 JAN 52 and Hf Foods Group, you can compare the effects of market volatilities on 65339KCA6 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 65339KCA6 with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of 65339KCA6 and Hf Foods.

Diversification Opportunities for 65339KCA6 and Hf Foods

0.42

Correlation Coefficient

65339KCA6  Hf Foods

Very weak diversification

The 3 months correlation between 65339KCA6 and HFFG is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding NEE 3 15 JAN 52 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 65339KCA6 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 NEE 3 15 JAN 52 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 65339KCA6 i.e., 65339KCA6 and Hf Foods go up and down completely randomly.

Pair Corralation between 65339KCA6 and Hf Foods

Assuming the 90 days trading horizon NEE 3 15 JAN 52 is expected to generate 0.54 times more return on investment than Hf Foods. However, NEE 3 15 JAN 52 is 1.87 times less risky than Hf Foods. It trades about -0.06 of its potential returns per unit of risk. Hf Foods Group is currently generating about -0.44 per unit of risk. If you would invest  6,678  in NEE 3 15 JAN 52 on December 5, 2024 and sell it today you would lose (296.00) from holding NEE 3 15 JAN 52 or give up 4.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	88.14%
Values	Daily Returns

NEE 3 15 JAN 52  vs.  Hf Foods Group

65339KCA6

Risk-Adjusted Performance

Weak

Over the last 90 days NEE 3 15 JAN 52 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 65339KCA6 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with 65339KCA6 and Hf Foods

The main advantage of trading using opposite 65339KCA6 and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 65339KCA6 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 NEE 3 15 JAN 52 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.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.