Correlation Between GRUPO CARSO and High Liner
Can any of the company-specific risk be diversified away by investing in both GRUPO CARSO and High Liner 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 GRUPO CARSO and High Liner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRUPO CARSO A1 and High Liner Foods, you can compare the effects of market volatilities on GRUPO CARSO and High Liner 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 GRUPO CARSO with a short position of High Liner. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRUPO CARSO and High Liner.
Diversification Opportunities for GRUPO CARSO and High Liner
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRUPO and High is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding GRUPO CARSO A1 and High Liner Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Liner Foods and GRUPO CARSO 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 GRUPO CARSO A1 are associated (or correlated) with High Liner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Liner Foods has no effect on the direction of GRUPO CARSO i.e., GRUPO CARSO and High Liner go up and down completely randomly.
Pair Corralation between GRUPO CARSO and High Liner
Assuming the 90 days trading horizon GRUPO CARSO A1 is expected to generate 2.2 times more return on investment than High Liner. However, GRUPO CARSO is 2.2 times more volatile than High Liner Foods. It trades about 0.06 of its potential returns per unit of risk. High Liner Foods is currently generating about 0.03 per unit of risk. If you would invest 244.00 in GRUPO CARSO A1 on October 28, 2024 and sell it today you would earn a total of 321.00 from holding GRUPO CARSO A1 or generate 131.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRUPO CARSO A1 vs. High Liner Foods
Performance |
| Timeline |
| GRUPO CARSO A1 |
| High Liner Foods |
GRUPO CARSO and High Liner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRUPO CARSO and High Liner
The main advantage of trading using opposite GRUPO CARSO and High Liner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRUPO CARSO position performs unexpectedly, High Liner 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 High Liner will offset losses from the drop in High Liner's long position.| GRUPO CARSO vs. Calibre Mining Corp | GRUPO CARSO vs. SBM OFFSHORE | GRUPO CARSO vs. FIREWEED METALS P | GRUPO CARSO vs. Solstad Offshore ASA |
| High Liner vs. General Mills | High Liner vs. Danone SA | High Liner vs. Hormel Foods | High Liner vs. Kellogg Company |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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