Correlation Between Highland Global and Midas Fund
Can any of the company-specific risk be diversified away by investing in both Highland Global and Midas Fund 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 Highland Global and Midas Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highland Global Allocation and Midas Fund Midas, you can compare the effects of market volatilities on Highland Global and Midas Fund 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 Highland Global with a short position of Midas Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Global and Midas Fund.
Diversification Opportunities for Highland Global and Midas Fund
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Highland and Midas is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Highland Global Allocation and Midas Fund Midas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midas Fund Midas and Highland Global 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 Highland Global Allocation are associated (or correlated) with Midas Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midas Fund Midas has no effect on the direction of Highland Global i.e., Highland Global and Midas Fund go up and down completely randomly.
Pair Corralation between Highland Global and Midas Fund
Given the investment horizon of 90 days Highland Global is expected to generate 4.97 times less return on investment than Midas Fund. But when comparing it to its historical volatility, Highland Global Allocation is 1.81 times less risky than Midas Fund. It trades about 0.05 of its potential returns per unit of risk. Midas Fund Midas is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 214.00 in Midas Fund Midas on June 1, 2025 and sell it today you would earn a total of 32.00 from holding Midas Fund Midas or generate 14.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highland Global Allocation vs. Midas Fund Midas
Performance |
| Timeline |
| Highland Global Allo |
| Midas Fund Midas |
Highland Global and Midas Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Global and Midas Fund
The main advantage of trading using opposite Highland Global and Midas Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Global position performs unexpectedly, Midas Fund 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 Midas Fund will offset losses from the drop in Midas Fund's long position.| Highland Global vs. Highland Opportunities And | Highland Global vs. Clough Global Allocation | Highland Global vs. Aberdeen Income Credit | Highland Global vs. Rivernorth Opportunities |
| Midas Fund vs. Gold And Precious | Midas Fund vs. World Precious Minerals | Midas Fund vs. Gabelli Gold Fund | Midas Fund vs. International Investors Gold |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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