Correlation Between Highland Longshort and City National
Can any of the company-specific risk be diversified away by investing in both Highland Longshort and City National 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 Highland Longshort and City National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highland Longshort Healthcare and City National Rochdale, you can compare the effects of market volatilities on Highland Longshort and City National 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 Highland Longshort with a short position of City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Longshort and City National.
Diversification Opportunities for Highland Longshort and City National
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Highland and City is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Highland Longshort Healthcare and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale and Highland Longshort 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 Highland Longshort Healthcare are associated (or correlated) with City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of Highland Longshort i.e., Highland Longshort and City National go up and down completely randomly.
Pair Corralation between Highland Longshort and City National
If you would invest 983.00 in City National Rochdale on September 14, 2024 and sell it today you would earn a total of 0.00 from holding City National Rochdale or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Highland Longshort Healthcare vs. City National Rochdale
Performance |
| Timeline |
| Highland Longshort |
| City National Rochdale |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Highland Longshort and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Longshort and City National
The main advantage of trading using opposite Highland Longshort and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Longshort position performs unexpectedly, City National 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 City National will offset losses from the drop in City National's long position.| Highland Longshort vs. Franklin Real Estate | Highland Longshort vs. Fidelity Real Estate | Highland Longshort vs. Goldman Sachs Real | Highland Longshort vs. Commonwealth Real Estate |
| City National vs. Allianzgi Health Sciences | City National vs. Tekla Healthcare Opportunities | City National vs. Highland Longshort Healthcare | City National vs. Blackrock Health Sciences |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stocks Directory Find actively traded stocks across global markets |