Correlation Between Highland Long/short and Americafirst Large
Can any of the company-specific risk be diversified away by investing in both Highland Long/short and Americafirst Large 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 Americafirst Large 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 Americafirst Large Cap, you can compare the effects of market volatilities on Highland Long/short and Americafirst Large 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 Americafirst Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Long/short and Americafirst Large.
Diversification Opportunities for Highland Long/short and Americafirst Large
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Highland and AMERICAFIRST is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Highland Longshort Healthcare and Americafirst Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americafirst Large Cap 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 Americafirst Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americafirst Large Cap has no effect on the direction of Highland Long/short i.e., Highland Long/short and Americafirst Large go up and down completely randomly.
Pair Corralation between Highland Long/short and Americafirst Large
Assuming the 90 days horizon Highland Longshort Healthcare is expected to generate 0.07 times more return on investment than Americafirst Large. However, Highland Longshort Healthcare is 13.88 times less risky than Americafirst Large. It trades about -0.1 of its potential returns per unit of risk. Americafirst Large Cap is currently generating about -0.1 per unit of risk. If you would invest 1,647 in Highland Longshort Healthcare on October 13, 2024 and sell it today you would lose (4.00) from holding Highland Longshort Healthcare or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Highland Longshort Healthcare vs. Americafirst Large Cap
Performance |
| Timeline |
| Highland Long/short |
| Americafirst Large Cap |
Highland Long/short and Americafirst Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Long/short and Americafirst Large
The main advantage of trading using opposite Highland Long/short and Americafirst Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Long/short position performs unexpectedly, Americafirst Large 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 Americafirst Large will offset losses from the drop in Americafirst Large's long position.| Highland Long/short vs. Pace Municipal Fixed | Highland Long/short vs. Nuveen Strategic Municipal | Highland Long/short vs. Blackrock Pa Muni | Highland Long/short vs. Bbh Intermediate Municipal |
| Americafirst Large vs. Victory Incore Investment | Americafirst Large vs. Rationalpier 88 Convertible | Americafirst Large vs. Columbia Convertible Securities | Americafirst Large vs. Gabelli Convertible And |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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