Correlation Between Stampede Drilling and High Liner
Can any of the company-specific risk be diversified away by investing in both Stampede Drilling and High Liner 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 Stampede Drilling and High Liner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stampede Drilling and High Liner Foods, you can compare the effects of market volatilities on Stampede Drilling and High Liner 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 Stampede Drilling with a short position of High Liner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stampede Drilling and High Liner.
Diversification Opportunities for Stampede Drilling and High Liner
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stampede and High is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Stampede Drilling and High Liner Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Liner Foods and Stampede Drilling 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 Stampede Drilling are associated (or correlated) with High Liner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Liner Foods has no effect on the direction of Stampede Drilling i.e., Stampede Drilling and High Liner go up and down completely randomly.
Pair Corralation between Stampede Drilling and High Liner
Assuming the 90 days horizon Stampede Drilling is expected to under-perform the High Liner. In addition to that, Stampede Drilling is 2.15 times more volatile than High Liner Foods. It trades about -0.01 of its total potential returns per unit of risk. High Liner Foods is currently generating about 0.1 per unit of volatility. If you would invest 1,059 in High Liner Foods on September 14, 2024 and sell it today you would earn a total of 525.00 from holding High Liner Foods or generate 49.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stampede Drilling vs. High Liner Foods
Performance |
| Timeline |
| Stampede Drilling |
| High Liner Foods |
Stampede Drilling and High Liner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stampede Drilling and High Liner
The main advantage of trading using opposite Stampede Drilling and High Liner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stampede Drilling position performs unexpectedly, High Liner 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 Liner will offset losses from the drop in High Liner's long position.| Stampede Drilling vs. STEP Energy Services | Stampede Drilling vs. Southern Energy Corp | Stampede Drilling vs. PHX Energy Services |
| High Liner vs. Leons Furniture Limited | High Liner vs. Autocanada | High Liner vs. Maple Leaf Foods | High Liner vs. Premium Brands Holdings |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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