Correlation Between Highland Long/short and Siit E
Can any of the company-specific risk be diversified away by investing in both Highland Long/short and Siit E 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 Siit E 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 Siit E Fixed, you can compare the effects of market volatilities on Highland Long/short and Siit E 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 Siit E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Long/short and Siit E.
Diversification Opportunities for Highland Long/short and Siit E
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Highland and Siit is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Highland Longshort Healthcare and Siit E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit E Fixed 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 Siit E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit E Fixed has no effect on the direction of Highland Long/short i.e., Highland Long/short and Siit E go up and down completely randomly.
Pair Corralation between Highland Long/short and Siit E
Assuming the 90 days horizon Highland Longshort Healthcare is expected to under-perform the Siit E. But the mutual fund apears to be less risky and, when comparing its historical volatility, Highland Longshort Healthcare is 1.65 times less risky than Siit E. The mutual fund trades about -0.28 of its potential returns per unit of risk. The Siit E Fixed is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 869.00 in Siit E Fixed on November 29, 2024 and sell it today you would earn a total of 16.00 from holding Siit E Fixed or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highland Longshort Healthcare vs. Siit E Fixed
Performance |
| Timeline |
| Highland Long/short |
| Siit E Fixed |
Highland Long/short and Siit E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Long/short and Siit E
The main advantage of trading using opposite Highland Long/short and Siit E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Long/short position performs unexpectedly, Siit E 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 Siit E will offset losses from the drop in Siit E's long position.| Highland Long/short vs. Ftufox | Highland Long/short vs. Fdzbpx | Highland Long/short vs. Wmcanx | Highland Long/short vs. Fxybjx |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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