Correlation Between High Co and Impulse Fitness

Can any of the company-specific risk be diversified away by investing in both High Co and Impulse Fitness 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 High Co and Impulse Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between High Co SA and Impulse Fitness Solutions, you can compare the effects of market volatilities on High Co and Impulse Fitness 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 High Co with a short position of Impulse Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Co and Impulse Fitness.

Diversification Opportunities for High Co and Impulse Fitness

0.0

Correlation Coefficient

High Co  Impulse Fitness

Pay attention - limited upside

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

Pair Corralation between High Co and Impulse Fitness

If you would invest  247.00  in High Co SA on December 27, 2024 and sell it today you would earn a total of  77.00  from holding High Co SA or generate 31.17% return on investment over 90 days.

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

High Co SA  vs.  Impulse Fitness Solutions

High Co SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in High Co SA are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, High Co sustained solid returns over the last few months and may actually be approaching a breakup point.

Impulse Fitness Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Impulse Fitness Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Impulse Fitness is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with High Co and Impulse Fitness

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

The idea behind High Co SA and Impulse Fitness Solutions 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.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.