Correlation Between High Liner and ACHETER LOUER
Can any of the company-specific risk be diversified away by investing in both High Liner and ACHETER LOUER 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 ACHETER LOUER 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 ACHETER LOUER EO 145612, you can compare the effects of market volatilities on High Liner and ACHETER LOUER 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 ACHETER LOUER. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and ACHETER LOUER.
Diversification Opportunities for High Liner and ACHETER LOUER
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High and ACHETER is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods and ACHETER LOUER EO 145612 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACHETER LOUER EO 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 ACHETER LOUER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACHETER LOUER EO has no effect on the direction of High Liner i.e., High Liner and ACHETER LOUER go up and down completely randomly.
Pair Corralation between High Liner and ACHETER LOUER
Assuming the 90 days horizon High Liner Foods is expected to generate 0.12 times more return on investment than ACHETER LOUER. However, High Liner Foods is 8.03 times less risky than ACHETER LOUER. It trades about 0.05 of its potential returns per unit of risk. ACHETER LOUER EO 145612 is currently generating about -0.21 per unit of risk. If you would invest 1,040 in High Liner Foods on November 1, 2024 and sell it today you would earn a total of 20.00 from holding High Liner Foods or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Liner Foods vs. ACHETER LOUER EO 145612
Performance |
| Timeline |
| High Liner Foods |
| ACHETER LOUER EO |
High Liner and ACHETER LOUER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and ACHETER LOUER
The main advantage of trading using opposite High Liner and ACHETER LOUER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner position performs unexpectedly, ACHETER LOUER 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 ACHETER LOUER will offset losses from the drop in ACHETER LOUER's long position.| High Liner vs. BOS BETTER ONLINE | High Liner vs. Salesforce | High Liner vs. Pebblebrook Hotel Trust | High Liner vs. CARSALESCOM |
| ACHETER LOUER vs. High Liner Foods | ACHETER LOUER vs. China Eastern Airlines | ACHETER LOUER vs. American Airlines Group | ACHETER LOUER vs. SENECA FOODS A |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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