Correlation Between Allspring Global and Highland Opportunities

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

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

Diversification Opportunities for Allspring Global and Highland Opportunities

0.76

Correlation Coefficient

Allspring Global  Highland Opportunities

Poor diversification

The 3 months correlation between Allspring and Highland is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Allspring Global Dividend and Highland Opportunities And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Opportunities and Allspring 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 Allspring Global Dividend 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 Allspring Global i.e., Allspring Global and Highland Opportunities go up and down completely randomly.

Pair Corralation between Allspring Global and Highland Opportunities

Considering the 90-day investment horizon Allspring Global Dividend is expected to generate 0.94 times more return on investment than Highland Opportunities. However, Allspring Global Dividend is 1.07 times less risky than Highland Opportunities. It trades about 0.16 of its potential returns per unit of risk. Highland Opportunities And is currently generating about 0.12 per unit of risk. If you would invest  505.00  in Allspring Global Dividend on May 6, 2025 and sell it today you would earn a total of  45.00  from holding Allspring Global Dividend or generate 8.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Allspring Global Dividend  vs.  Highland Opportunities And

Allspring Global Dividend

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Allspring Global Dividend are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather unsteady basic indicators, Allspring Global may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Highland Opportunities

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Highland Opportunities And are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak basic indicators, Highland Opportunities may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Allspring Global and Highland Opportunities

The main advantage of trading using opposite Allspring Global and Highland Opportunities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allspring Global 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 Allspring Global Dividend 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.