Correlation Between High Liner and Oncolytics Biotech
Can any of the company-specific risk be diversified away by investing in both High Liner and Oncolytics Biotech 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 Oncolytics Biotech 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 Oncolytics Biotech, you can compare the effects of market volatilities on High Liner and Oncolytics Biotech 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 Oncolytics Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and Oncolytics Biotech.
Diversification Opportunities for High Liner and Oncolytics Biotech
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High and Oncolytics is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods and Oncolytics Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncolytics Biotech 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 Oncolytics Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncolytics Biotech has no effect on the direction of High Liner i.e., High Liner and Oncolytics Biotech go up and down completely randomly.
Pair Corralation between High Liner and Oncolytics Biotech
Assuming the 90 days trading horizon High Liner Foods is expected to generate 0.37 times more return on investment than Oncolytics Biotech. However, High Liner Foods is 2.7 times less risky than Oncolytics Biotech. It trades about -0.1 of its potential returns per unit of risk. Oncolytics Biotech is currently generating about -0.1 per unit of risk. If you would invest 1,570 in High Liner Foods on October 23, 2024 and sell it today you would lose (48.00) from holding High Liner Foods or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Liner Foods vs. Oncolytics Biotech
Performance |
| Timeline |
| High Liner Foods |
| Oncolytics Biotech |
High Liner and Oncolytics Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and Oncolytics Biotech
The main advantage of trading using opposite High Liner and Oncolytics Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner position performs unexpectedly, Oncolytics Biotech 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 Oncolytics Biotech will offset losses from the drop in Oncolytics Biotech'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 |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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