Correlation Between IHIT and Highland Opportunities

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

By analyzing existing cross correlation between IHIT and Highland Opportunities And, you can compare the effects of market volatilities on IHIT and Highland Opportunities 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 IHIT with a short position of Highland Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHIT and Highland Opportunities.

Diversification Opportunities for IHIT and Highland Opportunities

0.0

Correlation Coefficient

IHIT  Highland Opportunities

Pay attention - limited upside

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

Pair Corralation between IHIT and Highland Opportunities

If you would invest (100.00) in IHIT on December 28, 2024 and sell it today you would earn a total of  100.00  from holding IHIT or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

IHIT  vs.  Highland Opportunities And

IHIT

Risk-Adjusted Performance

Very Weak

Over the last 90 days IHIT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, IHIT is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Highland Opportunities

Risk-Adjusted Performance

Very Weak

Over the last 90 days Highland Opportunities And has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, Highland Opportunities is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with IHIT and Highland Opportunities

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

The idea behind IHIT and Highland Opportunities And 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.