Correlation Between High Performance and Critic Clothing
Can any of the company-specific risk be diversified away by investing in both High Performance and Critic Clothing 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 Performance and Critic Clothing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Performance Beverages and Critic Clothing, you can compare the effects of market volatilities on High Performance and Critic Clothing 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 Performance with a short position of Critic Clothing. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Performance and Critic Clothing.
Diversification Opportunities for High Performance and Critic Clothing
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High and Critic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding High Performance Beverages and Critic Clothing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Critic Clothing and High Performance 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 Performance Beverages are associated (or correlated) with Critic Clothing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Critic Clothing has no effect on the direction of High Performance i.e., High Performance and Critic Clothing go up and down completely randomly.
Pair Corralation between High Performance and Critic Clothing
If you would invest 0.48 in Critic Clothing on September 2, 2025 and sell it today you would earn a total of 0.12 from holding Critic Clothing or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.92% |
| Values | Daily Returns |
High Performance Beverages vs. Critic Clothing
Performance |
| Timeline |
| High Performance Bev |
| Critic Clothing |
High Performance and Critic Clothing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Performance and Critic Clothing
The main advantage of trading using opposite High Performance and Critic Clothing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Performance position performs unexpectedly, Critic Clothing 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 Critic Clothing will offset losses from the drop in Critic Clothing's long position.| High Performance vs. Martin Marietta Materials | High Performance vs. Singapore Airlines | High Performance vs. LATAM Airlines Group | High Performance vs. Materialise NV |
| Critic Clothing vs. United Rentals | Critic Clothing vs. Kingsrose Mining Limited | Critic Clothing vs. Zijin Mining Group | Critic Clothing vs. Nicola Mining |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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