Correlation Between High Liner and Elixxer
Can any of the company-specific risk be diversified away by investing in both High Liner and Elixxer 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 Elixxer 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 Elixxer, you can compare the effects of market volatilities on High Liner and Elixxer 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 Elixxer. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and Elixxer.
Diversification Opportunities for High Liner and Elixxer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High and Elixxer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods and Elixxer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elixxer 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 Elixxer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elixxer has no effect on the direction of High Liner i.e., High Liner and Elixxer go up and down completely randomly.
Pair Corralation between High Liner and Elixxer
If you would invest 1,027 in High Liner Foods on September 14, 2024 and sell it today you would earn a total of 557.00 from holding High Liner Foods or generate 54.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Liner Foods vs. Elixxer
Performance |
| Timeline |
| High Liner Foods |
| Elixxer |
High Liner and Elixxer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and Elixxer
The main advantage of trading using opposite High Liner and Elixxer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner position performs unexpectedly, Elixxer 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 Elixxer will offset losses from the drop in Elixxer'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 |
| Elixxer vs. Decibel Cannabis | Elixxer vs. iShares Canadian HYBrid | Elixxer vs. Altagas Cum Red | Elixxer vs. iShares Fundamental Hedged |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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