Correlation Between High Liner and British Amer
Can any of the company-specific risk be diversified away by investing in both High Liner and British Amer 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 High Liner and British Amer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Liner Foods and biOasis Technologies, you can compare the effects of market volatilities on High Liner and British Amer 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 Liner with a short position of British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and British Amer.
Diversification Opportunities for High Liner and British Amer
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between High and British is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods and biOasis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on biOasis Technologies and High Liner 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 Liner Foods are associated (or correlated) with British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of biOasis Technologies has no effect on the direction of High Liner i.e., High Liner and British Amer go up and down completely randomly.
Pair Corralation between High Liner and British Amer
Assuming the 90 days trading horizon High Liner is expected to generate 104.27 times less return on investment than British Amer. But when comparing it to its historical volatility, High Liner Foods is 95.54 times less risky than British Amer. It trades about 0.12 of its potential returns per unit of risk. biOasis Technologies is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1.00 in biOasis Technologies on September 3, 2024 and sell it today you would earn a total of 124.00 from holding biOasis Technologies or generate 12400.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
High Liner Foods vs. biOasis Technologies
Performance |
| Timeline |
| High Liner Foods |
| biOasis Technologies |
High Liner and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and British Amer
The main advantage of trading using opposite High Liner and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner position performs unexpectedly, British Amer 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 British Amer will offset losses from the drop in British Amer's long position.| High Liner vs. Leons Furniture Limited | High Liner vs. Autocanada | High Liner vs. Maple Leaf Foods | High Liner vs. Premium Brands Holdings |
| British Amer vs. Canlan Ice Sports | British Amer vs. Questor Technology | British Amer vs. Guru Organic Energy | British Amer vs. Computer Modelling 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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