Correlation Between High Coast and Arctic Blue
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By analyzing existing cross correlation between High Coast Distillery and Arctic Blue Beverages, you can compare the effects of market volatilities on High Coast and Arctic Blue 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 Arctic Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Coast and Arctic Blue.
Diversification Opportunities for High Coast and Arctic Blue
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High and Arctic is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding High Coast Distillery and Arctic Blue Beverages in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arctic Blue Beverages 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 Arctic Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arctic Blue Beverages has no effect on the direction of High Coast i.e., High Coast and Arctic Blue go up and down completely randomly.
Pair Corralation between High Coast and Arctic Blue
Assuming the 90 days trading horizon High Coast Distillery is expected to generate 0.41 times more return on investment than Arctic Blue. However, High Coast Distillery is 2.44 times less risky than Arctic Blue. It trades about -0.02 of its potential returns per unit of risk. Arctic Blue Beverages is currently generating about -0.05 per unit of risk. If you would invest 4,420 in High Coast Distillery on September 19, 2024 and sell it today you would lose (100.00) from holding High Coast Distillery or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Coast Distillery vs. Arctic Blue Beverages
Performance |
| Timeline |
| High Coast Distillery |
| Arctic Blue Beverages |
High Coast and Arctic Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Coast and Arctic Blue
The main advantage of trading using opposite High Coast and Arctic Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Coast position performs unexpectedly, Arctic Blue 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 Arctic Blue will offset losses from the drop in Arctic Blue's long position.| High Coast vs. Viva Wine Group | High Coast vs. Arctic Blue Beverages | High Coast vs. KABE Group AB | High Coast vs. IAR Systems Group |
| Arctic Blue vs. Viva Wine Group | Arctic Blue vs. High Coast Distillery | Arctic Blue vs. KABE Group AB | Arctic Blue vs. IAR Systems Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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