Correlation Between Hf Foods and Collins Foods

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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

-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between HFFG and Collins is -0.3. 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 1.65 times more volatile than Collins Foods Limited. It trades about -0.07 of its total potential returns per unit of risk. Collins Foods Limited is currently generating about 0.15 per unit of volatility. If you would invest  593.00  in Collins Foods Limited on September 11, 2025 and sell it today you would earn a total of  137.00  from holding Collins Foods Limited or generate 23.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Hf Foods Group  vs.  Collins Foods Limited

 Performance 
       Timeline  
Hf Foods Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Hf Foods Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
Collins Foods Limited 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Collins Foods Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Collins Foods reported solid returns over the last few months and may actually be approaching a breakup point.

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.
The idea behind Hf Foods Group and Collins Foods Limited 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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