Correlation Between Highwood Asset and JEMTEC
Can any of the company-specific risk be diversified away by investing in both Highwood Asset and JEMTEC 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 Highwood Asset and JEMTEC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highwood Asset Management and JEMTEC Inc, you can compare the effects of market volatilities on Highwood Asset and JEMTEC 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 Highwood Asset with a short position of JEMTEC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highwood Asset and JEMTEC.
Diversification Opportunities for Highwood Asset and JEMTEC
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Highwood and JEMTEC is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Highwood Asset Management and JEMTEC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JEMTEC Inc and Highwood Asset 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 Highwood Asset Management are associated (or correlated) with JEMTEC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JEMTEC Inc has no effect on the direction of Highwood Asset i.e., Highwood Asset and JEMTEC go up and down completely randomly.
Pair Corralation between Highwood Asset and JEMTEC
Assuming the 90 days horizon Highwood Asset Management is expected to generate 0.32 times more return on investment than JEMTEC. However, Highwood Asset Management is 3.12 times less risky than JEMTEC. It trades about -0.09 of its potential returns per unit of risk. JEMTEC Inc is currently generating about -0.15 per unit of risk. If you would invest 606.00 in Highwood Asset Management on November 4, 2024 and sell it today you would lose (15.00) from holding Highwood Asset Management or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Highwood Asset Management vs. JEMTEC Inc
Performance |
| Timeline |
| Highwood Asset Management |
| JEMTEC Inc |
Highwood Asset and JEMTEC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highwood Asset and JEMTEC
The main advantage of trading using opposite Highwood Asset and JEMTEC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highwood Asset position performs unexpectedly, JEMTEC 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 JEMTEC will offset losses from the drop in JEMTEC's long position.| Highwood Asset vs. Constellation Software | Highwood Asset vs. Fairfax Financial Holdings | Highwood Asset vs. FirstService Corp | Highwood Asset vs. Intact Financial |
| JEMTEC vs. Brookfield Office Properties | JEMTEC vs. Hemisphere Energy | JEMTEC vs. Western Copper and | JEMTEC vs. Mako Mining Corp |
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
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |