Correlation Between High Coast and AcadeMedia
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By analyzing existing cross correlation between High Coast Distillery and AcadeMedia AB, you can compare the effects of market volatilities on High Coast and AcadeMedia 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 High Coast with a short position of AcadeMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Coast and AcadeMedia.
Diversification Opportunities for High Coast and AcadeMedia
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between High and AcadeMedia is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding High Coast Distillery and AcadeMedia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcadeMedia AB and High Coast 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 High Coast Distillery are associated (or correlated) with AcadeMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcadeMedia AB has no effect on the direction of High Coast i.e., High Coast and AcadeMedia go up and down completely randomly.
Pair Corralation between High Coast and AcadeMedia
Assuming the 90 days trading horizon High Coast Distillery is expected to generate 3.31 times more return on investment than AcadeMedia. However, High Coast is 3.31 times more volatile than AcadeMedia AB. It trades about 0.01 of its potential returns per unit of risk. AcadeMedia AB is currently generating about -0.25 per unit of risk. If you would invest 4,500 in High Coast Distillery on September 2, 2024 and sell it today you would lose (20.00) from holding High Coast Distillery or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Coast Distillery vs. AcadeMedia AB
Performance |
| Timeline |
| High Coast Distillery |
| AcadeMedia AB |
High Coast and AcadeMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Coast and AcadeMedia
The main advantage of trading using opposite High Coast and AcadeMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Coast position performs unexpectedly, AcadeMedia 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 AcadeMedia will offset losses from the drop in AcadeMedia's long position.| High Coast vs. Episurf Medical AB | High Coast vs. Scandic Hotels Group | High Coast vs. Lundin Mining | High Coast vs. 24SevenOffice Scandinavia AB |
| AcadeMedia vs. Inwido AB | AcadeMedia vs. Alimak Hek Group | AcadeMedia vs. Dometic Group AB | AcadeMedia vs. Byggmax Group AB |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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