Correlation Between High Liner and Hercules Capital
Can any of the company-specific risk be diversified away by investing in both High Liner and Hercules Capital 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 High Liner and Hercules Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Liner Foods and Hercules Capital, you can compare the effects of market volatilities on High Liner and Hercules Capital 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 High Liner with a short position of Hercules Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and Hercules Capital.
Diversification Opportunities for High Liner and Hercules Capital
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between High and Hercules is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods and Hercules Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hercules Capital and High Liner 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 High Liner Foods are associated (or correlated) with Hercules Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hercules Capital has no effect on the direction of High Liner i.e., High Liner and Hercules Capital go up and down completely randomly.
Pair Corralation between High Liner and Hercules Capital
If you would invest 1,971 in Hercules Capital on November 7, 2024 and sell it today you would earn a total of 69.00 from holding Hercules Capital or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
High Liner Foods vs. Hercules Capital
Performance |
| Timeline |
| High Liner Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Hercules Capital |
High Liner and Hercules Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and Hercules Capital
The main advantage of trading using opposite High Liner and Hercules Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner position performs unexpectedly, Hercules Capital 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 Hercules Capital will offset losses from the drop in Hercules Capital's long position.| High Liner vs. TOWNSQUARE MEDIA INC | High Liner vs. GigaMedia | High Liner vs. SQUIRREL MEDIA SA | High Liner vs. Live Nation Entertainment |
| Hercules Capital vs. Salesforce | Hercules Capital vs. SALESFORCE INC CDR | Hercules Capital vs. Lamar Advertising | Hercules Capital vs. THAI BEVERAGE |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| CEOs Directory Screen CEOs from public companies around the world |