Correlation Between Highwood Asset and Silver Bear

Can any of the company-specific risk be diversified away by investing in both Highwood Asset and Silver Bear 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 Highwood Asset and Silver Bear into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Highwood Asset Management and Silver Bear Resources, you can compare the effects of market volatilities on Highwood Asset and Silver Bear 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 Highwood Asset with a short position of Silver Bear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highwood Asset and Silver Bear.

Diversification Opportunities for Highwood Asset and Silver Bear

0.0

Correlation Coefficient

Highwood Asset  Silver Bear

Pay attention - limited upside

The 3 months correlation between Highwood and Silver is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Highwood Asset Management and Silver Bear Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Bear Resources and Highwood Asset 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 Highwood Asset Management are associated (or correlated) with Silver Bear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Bear Resources has no effect on the direction of Highwood Asset i.e., Highwood Asset and Silver Bear go up and down completely randomly.

Pair Corralation between Highwood Asset and Silver Bear

If you would invest  585.00  in Highwood Asset Management on October 9, 2024 and sell it today you would earn a total of  23.00  from holding Highwood Asset Management or generate 3.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Highwood Asset Management  vs.  Silver Bear Resources

Highwood Asset Management

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Highwood Asset Management are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Highwood Asset may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Silver Bear Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Silver Bear Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Silver Bear is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Highwood Asset and Silver Bear

The main advantage of trading using opposite Highwood Asset and Silver Bear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highwood Asset position performs unexpectedly, Silver Bear 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 Silver Bear will offset losses from the drop in Silver Bear's long position.

The idea behind Highwood Asset Management and Silver Bear Resources 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.

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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.