Correlation Between Investor and High Coast
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By analyzing existing cross correlation between Investor AB ser and High Coast Distillery, you can compare the effects of market volatilities on Investor and High Coast 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 Investor with a short position of High Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investor and High Coast.
Diversification Opportunities for Investor and High Coast
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Investor and High is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Investor AB ser and High Coast Distillery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Coast Distillery and Investor 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 Investor AB ser are associated (or correlated) with High Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Coast Distillery has no effect on the direction of Investor i.e., Investor and High Coast go up and down completely randomly.
Pair Corralation between Investor and High Coast
Assuming the 90 days trading horizon Investor AB ser is expected to under-perform the High Coast. But the stock apears to be less risky and, when comparing its historical volatility, Investor AB ser is 4.1 times less risky than High Coast. The stock trades about -0.15 of its potential returns per unit of risk. The High Coast Distillery is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,280 in High Coast Distillery on August 30, 2024 and sell it today you would earn a total of 200.00 from holding High Coast Distillery or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investor AB ser vs. High Coast Distillery
Performance |
| Timeline |
| Investor AB ser |
| High Coast Distillery |
Investor and High Coast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investor and High Coast
The main advantage of trading using opposite Investor and High Coast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investor position performs unexpectedly, High Coast 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 High Coast will offset losses from the drop in High Coast's long position.| Investor vs. Kinnevik Investment AB | Investor vs. Investment AB Latour | Investor vs. Samhllsbyggnadsbolaget i Norden | Investor vs. Industrivarden AB ser |
| High Coast vs. AcadeMedia AB | High Coast vs. Avanza Bank Holding | High Coast vs. Flexion Mobile PLC | High Coast vs. Maven Wireless Sweden |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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