Correlation Between Torque Lifestyle and High Liner
Can any of the company-specific risk be diversified away by investing in both Torque Lifestyle 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 Torque Lifestyle and High Liner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Torque Lifestyle Brands and High Liner Foods, you can compare the effects of market volatilities on Torque Lifestyle 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 Torque Lifestyle with a short position of High Liner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Torque Lifestyle and High Liner.
Diversification Opportunities for Torque Lifestyle and High Liner
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Torque and High is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Torque Lifestyle Brands 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 Torque Lifestyle 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 Torque Lifestyle Brands 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 Torque Lifestyle i.e., Torque Lifestyle and High Liner go up and down completely randomly.
Pair Corralation between Torque Lifestyle and High Liner
Given the investment horizon of 90 days Torque Lifestyle Brands is expected to generate 26.68 times more return on investment than High Liner. However, Torque Lifestyle is 26.68 times more volatile than High Liner Foods. It trades about 0.02 of its potential returns per unit of risk. High Liner Foods is currently generating about 0.41 per unit of risk. If you would invest 0.45 in Torque Lifestyle Brands on August 28, 2024 and sell it today you would lose (0.29) from holding Torque Lifestyle Brands or give up 64.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Torque Lifestyle Brands vs. High Liner Foods
Performance |
| Timeline |
| Torque Lifestyle Brands |
| High Liner Foods |
Torque Lifestyle and High Liner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Torque Lifestyle and High Liner
The main advantage of trading using opposite Torque Lifestyle and High Liner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Torque Lifestyle 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.| Torque Lifestyle vs. Artisan Consumer Goods | Torque Lifestyle vs. The A2 Milk | Torque Lifestyle vs. BioAdaptives | Torque Lifestyle vs. General Mills |
| High Liner vs. Grupo Bimbo SAB | High Liner vs. Lamb Weston Holdings | High Liner vs. Kellanova | High Liner vs. Premier Foods Plc |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |