Correlation Between Else Nutrition and Hanover Foods

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

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

Diversification Opportunities for Else Nutrition and Hanover Foods

0.17

Correlation Coefficient

Else Nutrition  Hanover Foods

Average diversification

The 3 months correlation between Else and Hanover is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Else Nutrition Holdings and Hanover Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanover Foods and Else Nutrition 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 Else Nutrition Holdings are associated (or correlated) with Hanover Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanover Foods has no effect on the direction of Else Nutrition i.e., Else Nutrition and Hanover Foods go up and down completely randomly.

Pair Corralation between Else Nutrition and Hanover Foods

Assuming the 90 days horizon Else Nutrition Holdings is expected to generate 576.86 times more return on investment than Hanover Foods. However, Else Nutrition is 576.86 times more volatile than Hanover Foods. It trades about 0.14 of its potential returns per unit of risk. Hanover Foods is currently generating about 0.13 per unit of risk. If you would invest  1.40  in Else Nutrition Holdings on May 4, 2025 and sell it today you would earn a total of  2.70  from holding Else Nutrition Holdings or generate 192.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Else Nutrition Holdings  vs.  Hanover Foods

Else Nutrition Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Else Nutrition Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Else Nutrition reported solid returns over the last few months and may actually be approaching a breakup point.

Hanover Foods

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hanover Foods are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Hanover Foods is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Else Nutrition and Hanover Foods

The main advantage of trading using opposite Else Nutrition and Hanover Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Else Nutrition position performs unexpectedly, Hanover 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 Hanover Foods will offset losses from the drop in Hanover Foods' long position.

The idea behind Else Nutrition Holdings and Hanover Foods 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.