Correlation Between Highland Global and Corebridge Financial

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

Diversification Opportunities for Highland Global and Corebridge Financial

-0.81

Correlation Coefficient

Highland Global  Corebridge Financial

Pay attention - limited upside

The 3 months correlation between Highland and Corebridge is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Highland Global Allocation and Corebridge Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corebridge Financial 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 Corebridge Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corebridge Financial has no effect on the direction of Highland Global i.e., Highland Global and Corebridge Financial go up and down completely randomly.

Pair Corralation between Highland Global and Corebridge Financial

Given the investment horizon of 90 days Highland Global Allocation is expected to generate 0.91 times more return on investment than Corebridge Financial. However, Highland Global Allocation is 1.09 times less risky than Corebridge Financial. It trades about 0.23 of its potential returns per unit of risk. Corebridge Financial is currently generating about -0.09 per unit of risk. If you would invest  809.00  in Highland Global Allocation on July 23, 2025 and sell it today you would earn a total of  191.00  from holding Highland Global Allocation or generate 23.61% return on investment over 90 days.

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

Highland Global Allocation  vs.  Corebridge Financial

Highland Global Allo

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Highland Global Allocation are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat unsteady essential indicators, Highland Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Corebridge Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days Corebridge Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's fundamental drivers remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Highland Global and Corebridge Financial

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

The idea behind Highland Global Allocation and Corebridge Financial 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.