Correlation Between High Liner and Libero Copper
Can any of the company-specific risk be diversified away by investing in both High Liner and Libero Copper 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 Libero Copper 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 Libero Copper Corp, you can compare the effects of market volatilities on High Liner and Libero Copper 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 Libero Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and Libero Copper.
Diversification Opportunities for High Liner and Libero Copper
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between High and Libero is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods and Libero Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libero Copper Corp 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 Libero Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libero Copper Corp has no effect on the direction of High Liner i.e., High Liner and Libero Copper go up and down completely randomly.
Pair Corralation between High Liner and Libero Copper
Assuming the 90 days trading horizon High Liner is expected to generate 2.13 times less return on investment than Libero Copper. But when comparing it to its historical volatility, High Liner Foods is 5.59 times less risky than Libero Copper. It trades about 0.03 of its potential returns per unit of risk. Libero Copper Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 150.00 in Libero Copper Corp on October 12, 2024 and sell it today you would lose (117.00) from holding Libero Copper Corp or give up 78.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
High Liner Foods vs. Libero Copper Corp
Performance |
| Timeline |
| High Liner Foods |
| Libero Copper Corp |
High Liner and Libero Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and Libero Copper
The main advantage of trading using opposite High Liner and Libero Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner position performs unexpectedly, Libero Copper 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 Libero Copper will offset losses from the drop in Libero Copper'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 |
| Libero Copper vs. Marimaca Copper Corp | Libero Copper vs. Maple Leaf Foods | Libero Copper vs. Magna Mining | Libero Copper vs. High Liner Foods |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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