Correlation Between Easy Software and High Liner
Can any of the company-specific risk be diversified away by investing in both Easy Software 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 Easy Software and High Liner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Easy Software AG and High Liner Foods, you can compare the effects of market volatilities on Easy Software 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 Easy Software with a short position of High Liner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easy Software and High Liner.
Diversification Opportunities for Easy Software and High Liner
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Easy and High is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Easy Software AG 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 Easy Software 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 Easy Software AG 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 Easy Software i.e., Easy Software and High Liner go up and down completely randomly.
Pair Corralation between Easy Software and High Liner
Assuming the 90 days trading horizon Easy Software AG is expected to generate 1.16 times more return on investment than High Liner. However, Easy Software is 1.16 times more volatile than High Liner Foods. It trades about 0.01 of its potential returns per unit of risk. High Liner Foods is currently generating about 0.0 per unit of risk. If you would invest 1,800 in Easy Software AG on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Easy Software AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easy Software AG vs. High Liner Foods
Performance |
| Timeline |
| Easy Software AG |
| High Liner Foods |
Easy Software and High Liner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easy Software and High Liner
The main advantage of trading using opposite Easy Software and High Liner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easy Software 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.| Easy Software vs. COMBA TELECOM SYST | Easy Software vs. Zoom Video Communications | Easy Software vs. PLAYMATES TOYS | Easy Software vs. Iridium Communications |
| High Liner vs. ecotel communication ag | High Liner vs. East Africa Metals | High Liner vs. GMO Internet | High Liner vs. Computershare Limited |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |