Correlation Between Hf Foods and Collins Foods
Can any of the company-specific risk be diversified away by investing in both Hf Foods and Collins 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 Hf Foods and Collins Foods 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 Collins Foods Limited, you can compare the effects of market volatilities on Hf Foods and Collins 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 Hf Foods with a short position of Collins Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and Collins Foods.
Diversification Opportunities for Hf Foods and Collins Foods
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HFFG and Collins is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and Collins Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collins Foods Limited 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 Collins Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collins Foods Limited has no effect on the direction of Hf Foods i.e., Hf Foods and Collins Foods go up and down completely randomly.
Pair Corralation between Hf Foods and Collins Foods
Given the investment horizon of 90 days Hf Foods Group is expected to under-perform the Collins Foods. In addition to that, Hf Foods is 1.68 times more volatile than Collins Foods Limited. It trades about -0.04 of its total potential returns per unit of risk. Collins Foods Limited is currently generating about 0.14 per unit of volatility. If you would invest 600.00 in Collins Foods Limited on September 8, 2025 and sell it today you would earn a total of 130.00 from holding Collins Foods Limited or generate 21.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hf Foods Group vs. Collins Foods Limited
Performance |
| Timeline |
| Hf Foods Group |
| Collins Foods Limited |
Hf Foods and Collins Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and Collins Foods
The main advantage of trading using opposite Hf Foods and Collins Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods position performs unexpectedly, Collins 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 Collins Foods will offset losses from the drop in Collins Foods' long position.| Hf Foods vs. Ispire Technology Common | Hf Foods vs. Chegg Inc | Hf Foods vs. TCTM Kids IT | Hf Foods vs. The Hain Celestial |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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