Correlation Between High Coast and Ferronordic
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By analyzing existing cross correlation between High Coast Distillery and Ferronordic AB, you can compare the effects of market volatilities on High Coast and Ferronordic 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 Ferronordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Coast and Ferronordic.
Diversification Opportunities for High Coast and Ferronordic
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between High and Ferronordic is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding High Coast Distillery and Ferronordic AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferronordic 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 Ferronordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferronordic AB has no effect on the direction of High Coast i.e., High Coast and Ferronordic go up and down completely randomly.
Pair Corralation between High Coast and Ferronordic
Assuming the 90 days trading horizon High Coast Distillery is expected to generate 1.71 times more return on investment than Ferronordic. However, High Coast is 1.71 times more volatile than Ferronordic AB. It trades about 0.12 of its potential returns per unit of risk. Ferronordic AB is currently generating about 0.08 per unit of risk. If you would invest 4,180 in High Coast Distillery on September 13, 2024 and sell it today you would earn a total of 340.00 from holding High Coast Distillery or generate 8.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Coast Distillery vs. Ferronordic AB
Performance |
| Timeline |
| High Coast Distillery |
| Ferronordic AB |
High Coast and Ferronordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Coast and Ferronordic
The main advantage of trading using opposite High Coast and Ferronordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Coast position performs unexpectedly, Ferronordic 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 Ferronordic will offset losses from the drop in Ferronordic'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 |
| Ferronordic vs. Lohilo Foods AB | Ferronordic vs. Lime Technologies AB | Ferronordic vs. Swedbank AB | Ferronordic vs. Bio Works Technologies 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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