Correlation Between Highland Longshort and Global Fixed
Can any of the company-specific risk be diversified away by investing in both Highland Longshort and Global Fixed 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 Global Fixed 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 Global Fixed Income, you can compare the effects of market volatilities on Highland Longshort and Global Fixed 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 Global Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Longshort and Global Fixed.
Diversification Opportunities for Highland Longshort and Global Fixed
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Highland and Global is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Highland Longshort Healthcare and Global Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Fixed Income 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 Global Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Fixed Income has no effect on the direction of Highland Longshort i.e., Highland Longshort and Global Fixed go up and down completely randomly.
Pair Corralation between Highland Longshort and Global Fixed
Assuming the 90 days horizon Highland Longshort Healthcare is expected to under-perform the Global Fixed. In addition to that, Highland Longshort is 1.33 times more volatile than Global Fixed Income. It trades about -0.17 of its total potential returns per unit of risk. Global Fixed Income is currently generating about 0.28 per unit of volatility. 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 |
Highland Longshort Healthcare vs. Global Fixed Income
Performance |
| Timeline |
| Highland Longshort |
| Global Fixed Income |
Highland Longshort and Global Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Longshort and Global Fixed
The main advantage of trading using opposite Highland Longshort and Global Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Longshort position performs unexpectedly, Global Fixed 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 Global Fixed will offset losses from the drop in Global Fixed's long position.| 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 |
| Global Fixed vs. Virtus Real Estate | Global Fixed vs. Forum Real Estate | Global Fixed vs. Vy Clarion Real | Global Fixed vs. Simt Real Estate |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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