Correlation Between High Liner and Slate Grocery
Can any of the company-specific risk be diversified away by investing in both High Liner and Slate Grocery 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 Slate Grocery 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 Slate Grocery REIT, you can compare the effects of market volatilities on High Liner and Slate Grocery 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 Slate Grocery. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and Slate Grocery.
Diversification Opportunities for High Liner and Slate Grocery
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between High and Slate is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods and Slate Grocery REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Grocery REIT 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 Slate Grocery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Grocery REIT has no effect on the direction of High Liner i.e., High Liner and Slate Grocery go up and down completely randomly.
Pair Corralation between High Liner and Slate Grocery
Assuming the 90 days trading horizon High Liner Foods is expected to generate 1.0 times more return on investment than Slate Grocery. However, High Liner Foods is 1.0 times less risky than Slate Grocery. It trades about 0.03 of its potential returns per unit of risk. Slate Grocery REIT is currently generating about 0.02 per unit of risk. If you would invest 1,308 in High Liner Foods on August 30, 2024 and sell it today you would earn a total of 225.00 from holding High Liner Foods or generate 17.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Liner Foods vs. Slate Grocery REIT
Performance |
| Timeline |
| High Liner Foods |
| Slate Grocery REIT |
High Liner and Slate Grocery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and Slate Grocery
The main advantage of trading using opposite High Liner and Slate Grocery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner position performs unexpectedly, Slate Grocery 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 Slate Grocery will offset losses from the drop in Slate Grocery'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 |
| Slate Grocery vs. Quorum Information Technologies | Slate Grocery vs. Vizsla Silver Corp | Slate Grocery vs. Mako Mining Corp | Slate Grocery vs. Oculus VisionTech |
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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