Correlation Between High Liner and Urbana
Can any of the company-specific risk be diversified away by investing in both High Liner and Urbana 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 Urbana 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 Urbana, you can compare the effects of market volatilities on High Liner and Urbana 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 Urbana. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and Urbana.
Diversification Opportunities for High Liner and Urbana
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between High and Urbana is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods and Urbana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urbana 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 Urbana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urbana has no effect on the direction of High Liner i.e., High Liner and Urbana go up and down completely randomly.
Pair Corralation between High Liner and Urbana
Assuming the 90 days trading horizon High Liner Foods is expected to generate 1.39 times more return on investment than Urbana. However, High Liner is 1.39 times more volatile than Urbana. It trades about 0.45 of its potential returns per unit of risk. Urbana is currently generating about 0.11 per unit of risk. If you would invest 1,293 in High Liner Foods on September 1, 2024 and sell it today you would earn a total of 233.00 from holding High Liner Foods or generate 18.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Liner Foods vs. Urbana
Performance |
| Timeline |
| High Liner Foods |
| Urbana |
High Liner and Urbana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and Urbana
The main advantage of trading using opposite High Liner and Urbana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner position performs unexpectedly, Urbana 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 Urbana will offset losses from the drop in Urbana'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 |
| Urbana vs. Canadian Imperial Bank | Urbana vs. Goodfood Market Corp | Urbana vs. First National Financial | Urbana 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |