Correlation Between Highland Long/short and Allianzgi Health
Can any of the company-specific risk be diversified away by investing in both Highland Long/short and Allianzgi Health 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 Allianzgi Health 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 Allianzgi Health Sciences, you can compare the effects of market volatilities on Highland Long/short and Allianzgi Health 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 Allianzgi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Long/short and Allianzgi Health.
Diversification Opportunities for Highland Long/short and Allianzgi Health
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Highland and Allianzgi is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Highland Longshort Healthcare and Allianzgi Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Health Sciences 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 Allianzgi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Health Sciences has no effect on the direction of Highland Long/short i.e., Highland Long/short and Allianzgi Health go up and down completely randomly.
Pair Corralation between Highland Long/short and Allianzgi Health
Assuming the 90 days horizon Highland Longshort Healthcare is expected to generate 0.24 times more return on investment than Allianzgi Health. However, Highland Longshort Healthcare is 4.14 times less risky than Allianzgi Health. It trades about 0.12 of its potential returns per unit of risk. Allianzgi Health Sciences is currently generating about -0.07 per unit of risk. If you would invest 1,602 in Highland Longshort Healthcare on August 24, 2024 and sell it today you would earn a total of 50.00 from holding Highland Longshort Healthcare or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highland Longshort Healthcare vs. Allianzgi Health Sciences
Performance |
| Timeline |
| Highland Long/short |
| Allianzgi Health Sciences |
Highland Long/short and Allianzgi Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Long/short and Allianzgi Health
The main advantage of trading using opposite Highland Long/short and Allianzgi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Long/short position performs unexpectedly, Allianzgi Health 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 Allianzgi Health will offset losses from the drop in Allianzgi Health's long position.| Highland Long/short vs. Pace High Yield | Highland Long/short vs. Multisector Bond Sma | Highland Long/short vs. Metropolitan West Porate | Highland Long/short vs. Ft 7934 Corporate |
| Allianzgi Health vs. Vanguard Health Care | Allianzgi Health vs. T Rowe Price | Allianzgi Health vs. Blackrock Health Sciences | Allianzgi Health vs. Health Care Portfolio |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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