Correlation Between AMCON Distributing and High Liner
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing 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 AMCON Distributing and High Liner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and High Liner Foods, you can compare the effects of market volatilities on AMCON Distributing 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 AMCON Distributing with a short position of High Liner. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and High Liner.
Diversification Opportunities for AMCON Distributing and High Liner
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMCON and High is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing i.e., AMCON Distributing and High Liner go up and down completely randomly.
Pair Corralation between AMCON Distributing and High Liner
Considering the 90-day investment horizon AMCON Distributing is expected to under-perform the High Liner. In addition to that, AMCON Distributing is 3.32 times more volatile than High Liner Foods. It trades about -0.02 of its total potential returns per unit of risk. High Liner Foods is currently generating about 0.41 per unit of volatility. If you would invest 945.00 in High Liner Foods on August 28, 2024 and sell it today you would earn a total of 137.00 from holding High Liner Foods or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMCON Distributing vs. High Liner Foods
Performance |
| Timeline |
| AMCON Distributing |
| High Liner Foods |
AMCON Distributing and High Liner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and High Liner
The main advantage of trading using opposite AMCON Distributing and High Liner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing 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.| AMCON Distributing vs. Steven Madden | AMCON Distributing vs. Vera Bradley | AMCON Distributing vs. Caleres | AMCON Distributing vs. Rocky Brands |
| High Liner vs. Grupo Bimbo SAB | High Liner vs. Lamb Weston Holdings | High Liner vs. Kellanova | High Liner vs. Premier Foods Plc |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Transaction History View history of all your transactions and understand their impact on performance |