Correlation Between Chefs Warehouse and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Chefs Warehouse 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 Chefs Warehouse and Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Chefs Warehouse and Hf Foods Group, you can compare the effects of market volatilities on Chefs Warehouse 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 Chefs Warehouse with a short position of Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chefs Warehouse and Hf Foods.
Diversification Opportunities for Chefs Warehouse and Hf Foods
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chefs and HFFG is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding The Chefs Warehouse 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 Chefs Warehouse 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 The Chefs Warehouse 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 Chefs Warehouse i.e., Chefs Warehouse and Hf Foods go up and down completely randomly.
Pair Corralation between Chefs Warehouse and Hf Foods
Given the investment horizon of 90 days The Chefs Warehouse is expected to generate 0.6 times more return on investment than Hf Foods. However, The Chefs Warehouse is 1.66 times less risky than Hf Foods. It trades about 0.09 of its potential returns per unit of risk. Hf Foods Group is currently generating about -0.09 per unit of risk. If you would invest 5,697 in The Chefs Warehouse on April 30, 2025 and sell it today you would earn a total of 571.00 from holding The Chefs Warehouse or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Chefs Warehouse vs. Hf Foods Group
Performance |
| Timeline |
| Chefs Warehouse |
| Hf Foods Group |
Chefs Warehouse and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chefs Warehouse and Hf Foods
The main advantage of trading using opposite Chefs Warehouse and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chefs Warehouse 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.| Chefs Warehouse vs. US Foods Holding | Chefs Warehouse vs. Sysco | Chefs Warehouse vs. SpartanNash Co | Chefs Warehouse vs. Calavo Growers |
| Hf Foods vs. Innovative Food Hldg | Hf Foods vs. G Willi Food International | Hf Foods vs. Calavo Growers | Hf Foods vs. The Chefs Warehouse |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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