Correlation Between High Performance and Group 1

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Can any of the company-specific risk be diversified away by investing in both High Performance and Group 1 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 Group 1 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 Group 1 Automotive, you can compare the effects of market volatilities on High Performance and Group 1 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 Group 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Performance and Group 1.

Diversification Opportunities for High Performance and Group 1

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between High Performance and Group 1

If you would invest  0.00  in High Performance Beverages on September 10, 2025 and sell it today you would earn a total of  0.00  from holding High Performance Beverages or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

High Performance Beverages  vs.  Group 1 Automotive

 Performance 
       Timeline  
High Performance Bev 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days High Performance Beverages has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, High Performance is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Group 1 Automotive 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Group 1 Automotive has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

High Performance and Group 1 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with High Performance and Group 1

The main advantage of trading using opposite High Performance and Group 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Performance position performs unexpectedly, Group 1 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 Group 1 will offset losses from the drop in Group 1's long position.
The idea behind High Performance Beverages and Group 1 Automotive 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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