Correlation Between Ximen Mining and High Liner
Can any of the company-specific risk be diversified away by investing in both Ximen Mining 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 Ximen Mining and High Liner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ximen Mining Corp and High Liner Foods, you can compare the effects of market volatilities on Ximen Mining 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 Ximen Mining with a short position of High Liner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ximen Mining and High Liner.
Diversification Opportunities for Ximen Mining and High Liner
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ximen and High is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ximen Mining Corp 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 Ximen Mining 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 Ximen Mining Corp 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 Ximen Mining i.e., Ximen Mining and High Liner go up and down completely randomly.
Pair Corralation between Ximen Mining and High Liner
Assuming the 90 days horizon Ximen Mining Corp is expected to under-perform the High Liner. In addition to that, Ximen Mining is 3.75 times more volatile than High Liner Foods. It trades about -0.07 of its total potential returns per unit of risk. High Liner Foods is currently generating about 0.43 per unit of volatility. If you would invest 1,324 in High Liner Foods on August 28, 2024 and sell it today you would earn a total of 231.00 from holding High Liner Foods or generate 17.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ximen Mining Corp vs. High Liner Foods
Performance |
| Timeline |
| Ximen Mining Corp |
| High Liner Foods |
Ximen Mining and High Liner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ximen Mining and High Liner
The main advantage of trading using opposite Ximen Mining and High Liner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ximen Mining 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.The idea behind Ximen Mining Corp and High Liner Foods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| 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 |