Correlation Between EVO Payments and Hf Foods

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

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

Diversification Opportunities for EVO Payments and Hf Foods

-0.28

Correlation Coefficient

EVO Payments  Hf Foods

Very good diversification

The 3 months correlation between EVO and HFFG is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding EVO Payments 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 EVO Payments 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 EVO Payments 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 EVO Payments i.e., EVO Payments and Hf Foods go up and down completely randomly.

Pair Corralation between EVO Payments and Hf Foods

If you would invest  3,399  in EVO Payments on February 15, 2024 and sell it today you would earn a total of  0.00  from holding EVO Payments or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.69%
Values	Daily Returns

EVO Payments  vs.  Hf Foods Group

EVO Payments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EVO Payments has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, EVO Payments is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Hf Foods Group

Risk-Adjusted Performance

0 of 100

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 June 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with EVO Payments and Hf Foods

The main advantage of trading using opposite EVO Payments and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVO Payments 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 EVO Payments 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.