Correlation Between Highland Longshort and Voya Global
Can any of the company-specific risk be diversified away by investing in both Highland Longshort and Voya Global 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 Voya Global 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 Voya Global Bond, you can compare the effects of market volatilities on Highland Longshort and Voya Global 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 Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Longshort and Voya Global.
Diversification Opportunities for Highland Longshort and Voya Global
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Highland and Voya is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Highland Longshort Healthcare and Voya Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Bond 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 Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Bond has no effect on the direction of Highland Longshort i.e., Highland Longshort and Voya Global go up and down completely randomly.
Pair Corralation between Highland Longshort and Voya Global
Assuming the 90 days horizon Highland Longshort Healthcare is expected to generate 0.47 times more return on investment than Voya Global. However, Highland Longshort Healthcare is 2.12 times less risky than Voya Global. It trades about 0.13 of its potential returns per unit of risk. Voya Global Bond is currently generating about 0.03 per unit of risk. If you would invest 1,459 in Highland Longshort Healthcare on September 18, 2024 and sell it today you would earn a total of 195.00 from holding Highland Longshort Healthcare or generate 13.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highland Longshort Healthcare vs. Voya Global Bond
Performance |
| Timeline |
| Highland Longshort |
| Voya Global Bond |
Highland Longshort and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Longshort and Voya Global
The main advantage of trading using opposite Highland Longshort and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Longshort position performs unexpectedly, Voya Global 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 Voya Global will offset losses from the drop in Voya Global's long position.| Highland Longshort vs. Highland Merger Arbitrage | Highland Longshort vs. Highland Small Cap Equity | Highland Longshort vs. Highland Small Cap Equity | Highland Longshort vs. Highland Small Cap Equity |
| Voya Global vs. Invesco Global Health | Voya Global vs. Prudential Health Sciences | Voya Global vs. Hartford Healthcare Hls | Voya Global vs. Highland Longshort Healthcare |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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