Correlation Between High Liner and TUT Fitness
Can any of the company-specific risk be diversified away by investing in both High Liner and TUT Fitness 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 TUT Fitness 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 TUT Fitness Group, you can compare the effects of market volatilities on High Liner and TUT Fitness 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 TUT Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and TUT Fitness.
Diversification Opportunities for High Liner and TUT Fitness
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High and TUT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods and TUT Fitness Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUT Fitness Group 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 TUT Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TUT Fitness Group has no effect on the direction of High Liner i.e., High Liner and TUT Fitness go up and down completely randomly.
Pair Corralation between High Liner and TUT Fitness
Assuming the 90 days trading horizon High Liner is expected to generate 21.03 times less return on investment than TUT Fitness. But when comparing it to its historical volatility, High Liner Foods is 13.82 times less risky than TUT Fitness. It trades about 0.03 of its potential returns per unit of risk. TUT Fitness Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 45.00 in TUT Fitness Group on September 3, 2024 and sell it today you would lose (37.00) from holding TUT Fitness Group or give up 82.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
High Liner Foods vs. TUT Fitness Group
Performance |
| Timeline |
| High Liner Foods |
| TUT Fitness Group |
High Liner and TUT Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and TUT Fitness
The main advantage of trading using opposite High Liner and TUT Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner position performs unexpectedly, TUT Fitness 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 TUT Fitness will offset losses from the drop in TUT Fitness' long position.| High Liner vs. Leons Furniture Limited | High Liner vs. Autocanada | High Liner vs. Maple Leaf Foods | High Liner vs. Premium Brands Holdings |
| TUT Fitness vs. High Liner Foods | TUT Fitness vs. Richelieu Hardware | TUT Fitness vs. International Zeolite Corp | TUT Fitness vs. European Residential Real |
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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