Correlation Between Arctic Blue and High Coast
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By analyzing existing cross correlation between Arctic Blue Beverages and High Coast Distillery, you can compare the effects of market volatilities on Arctic Blue and High Coast 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 Arctic Blue with a short position of High Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arctic Blue and High Coast.
Diversification Opportunities for Arctic Blue and High Coast
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arctic and High is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Arctic Blue Beverages and High Coast Distillery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Coast Distillery and Arctic Blue 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 Arctic Blue Beverages are associated (or correlated) with High Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Coast Distillery has no effect on the direction of Arctic Blue i.e., Arctic Blue and High Coast go up and down completely randomly.
Pair Corralation between Arctic Blue and High Coast
Assuming the 90 days trading horizon Arctic Blue Beverages is expected to generate 5.79 times more return on investment than High Coast. However, Arctic Blue is 5.79 times more volatile than High Coast Distillery. It trades about 0.12 of its potential returns per unit of risk. High Coast Distillery is currently generating about 0.02 per unit of risk. If you would invest 33.00 in Arctic Blue Beverages on November 28, 2024 and sell it today you would earn a total of 181.00 from holding Arctic Blue Beverages or generate 548.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arctic Blue Beverages vs. High Coast Distillery
Performance |
| Timeline |
| Arctic Blue Beverages |
| High Coast Distillery |
Arctic Blue and High Coast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arctic Blue and High Coast
The main advantage of trading using opposite Arctic Blue and High Coast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arctic Blue position performs unexpectedly, High Coast 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 Coast will offset losses from the drop in High Coast's long position.| Arctic Blue vs. Invisio Communications AB | Arctic Blue vs. AcadeMedia AB | Arctic Blue vs. Nordic Asia Investment | Arctic Blue vs. Indutrade AB |
| High Coast vs. Catena Media plc | High Coast vs. USWE Sports AB | High Coast vs. Skandinaviska Enskilda Banken | High Coast vs. JLT Mobile Computers |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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