Correlation Between High Liner and GRENKELEASING Dusseldorf
Can any of the company-specific risk be diversified away by investing in both High Liner and GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf, you can compare the effects of market volatilities on High Liner and GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and GRENKELEASING Dusseldorf.
Diversification Opportunities for High Liner and GRENKELEASING Dusseldorf
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between High and GRENKELEASING is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods and GRENKELEASING Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRENKELEASING Dusseldorf has no effect on the direction of High Liner i.e., High Liner and GRENKELEASING Dusseldorf go up and down completely randomly.
Pair Corralation between High Liner and GRENKELEASING Dusseldorf
Assuming the 90 days horizon High Liner Foods is expected to generate 0.66 times more return on investment than GRENKELEASING Dusseldorf. However, High Liner Foods is 1.53 times less risky than GRENKELEASING Dusseldorf. It trades about 0.15 of its potential returns per unit of risk. GRENKELEASING Dusseldorf is currently generating about -0.18 per unit of risk. If you would invest 831.00 in High Liner Foods on October 26, 2024 and sell it today you would earn a total of 179.00 from holding High Liner Foods or generate 21.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Liner Foods vs. GRENKELEASING Dusseldorf
Performance |
| Timeline |
| High Liner Foods |
| GRENKELEASING Dusseldorf |
High Liner and GRENKELEASING Dusseldorf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and GRENKELEASING Dusseldorf
The main advantage of trading using opposite High Liner and GRENKELEASING Dusseldorf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner position performs unexpectedly, GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf will offset losses from the drop in GRENKELEASING Dusseldorf's long position.| High Liner vs. General Mills | High Liner vs. Danone SA | High Liner vs. Hormel Foods | High Liner vs. Kellogg Company |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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