Correlation Between High Liner and Orca Energy
Can any of the company-specific risk be diversified away by investing in both High Liner and Orca Energy 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 Orca Energy 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 Orca Energy Group, you can compare the effects of market volatilities on High Liner and Orca Energy 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 Orca Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and Orca Energy.
Diversification Opportunities for High Liner and Orca Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High and Orca is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods and Orca Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orca Energy 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 Orca Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orca Energy Group has no effect on the direction of High Liner i.e., High Liner and Orca Energy go up and down completely randomly.
Pair Corralation between High Liner and Orca Energy
Assuming the 90 days trading horizon High Liner Foods is expected to generate 4.2 times more return on investment than Orca Energy. However, High Liner is 4.2 times more volatile than Orca Energy Group. It trades about 0.04 of its potential returns per unit of risk. Orca Energy Group is currently generating about -0.04 per unit of risk. If you would invest 1,254 in High Liner Foods on September 14, 2024 and sell it today you would earn a total of 330.00 from holding High Liner Foods or generate 26.32% 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. Orca Energy Group
Performance |
| Timeline |
| High Liner Foods |
| Orca Energy Group |
High Liner and Orca Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and Orca Energy
The main advantage of trading using opposite High Liner and Orca Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner position performs unexpectedly, Orca Energy 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 Orca Energy will offset losses from the drop in Orca Energy'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 |
| Orca Energy vs. Mako Mining Corp | Orca Energy vs. High Liner Foods | Orca Energy vs. Ramp Metals | Orca Energy vs. Lion One Metals |
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.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |