Correlation Between Great Lakes and Halitron

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

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

Diversification Opportunities for Great Lakes and Halitron

0.0

Correlation Coefficient

Great Lakes  Halitron

Pay attention - limited upside

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

Pair Corralation between Great Lakes and Halitron

If you would invest  862.00  in Great Lakes Dredge on August 10, 2024 and sell it today you would earn a total of  376.00  from holding Great Lakes Dredge or generate 43.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Great Lakes Dredge  vs.  Halitron

Great Lakes Dredge

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Great Lakes Dredge are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Great Lakes exhibited solid returns over the last few months and may actually be approaching a breakup point.

Halitron

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Great Lakes and Halitron

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

The idea behind Great Lakes Dredge and Halitron 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..