Correlation Between Highland Long/short and Ing Intermediate
Can any of the company-specific risk be diversified away by investing in both Highland Long/short and Ing Intermediate 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 Long/short and Ing Intermediate 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 Ing Intermediate Bond, you can compare the effects of market volatilities on Highland Long/short and Ing Intermediate 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 Long/short with a short position of Ing Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Long/short and Ing Intermediate.
Diversification Opportunities for Highland Long/short and Ing Intermediate
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Highland and Ing is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Highland Longshort Healthcare and Ing Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ing Intermediate Bond and Highland Long/short 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 Ing Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ing Intermediate Bond has no effect on the direction of Highland Long/short i.e., Highland Long/short and Ing Intermediate go up and down completely randomly.
Pair Corralation between Highland Long/short and Ing Intermediate
Assuming the 90 days horizon Highland Longshort Healthcare is expected to generate 0.66 times more return on investment than Ing Intermediate. However, Highland Longshort Healthcare is 1.52 times less risky than Ing Intermediate. It trades about 0.19 of its potential returns per unit of risk. Ing Intermediate Bond is currently generating about -0.1 per unit of risk. If you would invest 1,636 in Highland Longshort Healthcare on September 3, 2024 and sell it today you would earn a total of 27.00 from holding Highland Longshort Healthcare or generate 1.65% 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. Ing Intermediate Bond
Performance |
| Timeline |
| Highland Long/short |
| Ing Intermediate Bond |
Highland Long/short and Ing Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Long/short and Ing Intermediate
The main advantage of trading using opposite Highland Long/short and Ing Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Long/short position performs unexpectedly, Ing Intermediate 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 Ing Intermediate will offset losses from the drop in Ing Intermediate's long position.| Highland Long/short vs. Ab Value Fund | Highland Long/short vs. Balanced Fund Investor | Highland Long/short vs. Rbb Fund | Highland Long/short vs. Omni Small Cap Value |
| Ing Intermediate vs. Hennessy Bp Energy | Ing Intermediate vs. Tortoise Energy Independence | Ing Intermediate vs. Dreyfus Natural Resources | Ing Intermediate vs. Fidelity Advisor Energy |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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