Correlation Between Global Fixed and Highland Longshort
Can any of the company-specific risk be diversified away by investing in both Global Fixed and Highland Longshort 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 Global Fixed and Highland Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Fixed Income and Highland Longshort Healthcare, you can compare the effects of market volatilities on Global Fixed and Highland Longshort 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 Global Fixed with a short position of Highland Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Fixed and Highland Longshort.
Diversification Opportunities for Global Fixed and Highland Longshort
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Highland is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Global Fixed Income and Highland Longshort Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Longshort and Global Fixed 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 Global Fixed Income are associated (or correlated) with Highland Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Longshort has no effect on the direction of Global Fixed i.e., Global Fixed and Highland Longshort go up and down completely randomly.
Pair Corralation between Global Fixed and Highland Longshort
Assuming the 90 days horizon Global Fixed Income is expected to generate 0.75 times more return on investment than Highland Longshort. However, Global Fixed Income is 1.33 times less risky than Highland Longshort. It trades about 0.28 of its potential returns per unit of risk. Highland Longshort Healthcare is currently generating about -0.17 per unit of risk. If you would invest 523.00 in Global Fixed Income on September 13, 2024 and sell it today you would earn a total of 4.00 from holding Global Fixed Income or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Fixed Income vs. Highland Longshort Healthcare
Performance |
| Timeline |
| Global Fixed Income |
| Highland Longshort |
Global Fixed and Highland Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Fixed and Highland Longshort
The main advantage of trading using opposite Global Fixed and Highland Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Fixed position performs unexpectedly, Highland Longshort 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 Highland Longshort will offset losses from the drop in Highland Longshort's long position.| Global Fixed vs. Virtus Real Estate | Global Fixed vs. Forum Real Estate | Global Fixed vs. Vy Clarion Real | Global Fixed vs. Simt Real Estate |
| Highland Longshort vs. Janus High Yield Fund | Highland Longshort vs. Msift High Yield | Highland Longshort vs. Blackrock High Yield | Highland Longshort vs. T Rowe Price |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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