Correlation Between High Liner and Partners Value
Can any of the company-specific risk be diversified away by investing in both High Liner and Partners Value 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 Partners Value 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 Partners Value Investments, you can compare the effects of market volatilities on High Liner and Partners Value 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 Partners Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and Partners Value.
Diversification Opportunities for High Liner and Partners Value
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between High and Partners is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods and Partners Value Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partners Value Inves 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 Partners Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partners Value Inves has no effect on the direction of High Liner i.e., High Liner and Partners Value go up and down completely randomly.
Pair Corralation between High Liner and Partners Value
Assuming the 90 days trading horizon High Liner Foods is expected to generate 0.53 times more return on investment than Partners Value. However, High Liner Foods is 1.88 times less risky than Partners Value. It trades about 0.01 of its potential returns per unit of risk. Partners Value Investments is currently generating about -0.01 per unit of risk. If you would invest 1,600 in High Liner Foods on November 5, 2024 and sell it today you would earn a total of 0.00 from holding High Liner Foods or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
High Liner Foods vs. Partners Value Investments
Performance |
| Timeline |
| High Liner Foods |
| Partners Value Inves |
High Liner and Partners Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and Partners Value
The main advantage of trading using opposite High Liner and Partners Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner position performs unexpectedly, Partners Value 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 Partners Value will offset losses from the drop in Partners Value'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 |
| Partners Value vs. Storage Vault Canada | Partners Value vs. Overactive Media Corp | Partners Value vs. Thunderbird Entertainment Group | Partners Value vs. Vizsla Silver Corp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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