Correlation Between Dana and High Performance
Can any of the company-specific risk be diversified away by investing in both Dana and High Performance 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 Dana and High Performance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Inc and High Performance Beverages, you can compare the effects of market volatilities on Dana and High Performance 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 Dana with a short position of High Performance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana and High Performance.
Diversification Opportunities for Dana and High Performance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dana and High is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dana Inc and High Performance Beverages in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Performance Bev and Dana 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 Dana Inc are associated (or correlated) with High Performance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Performance Bev has no effect on the direction of Dana i.e., Dana and High Performance go up and down completely randomly.
Pair Corralation between Dana and High Performance
If you would invest 1,157 in Dana Inc on October 22, 2024 and sell it today you would earn a total of 135.00 from holding Dana Inc or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 89.47% |
| Values | Daily Returns |
Dana Inc vs. High Performance Beverages
Performance |
| Timeline |
| Dana Inc |
| High Performance Bev |
Dana and High Performance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana and High Performance
The main advantage of trading using opposite Dana and High Performance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana position performs unexpectedly, High Performance 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 Performance will offset losses from the drop in High Performance's long position.The idea behind Dana Inc and High Performance Beverages pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| High Performance vs. V Group | High Performance vs. Fbec Worldwide | High Performance vs. Hiru Corporation | High Performance vs. Alkame Holdings |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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