Correlation Between Highland Global and Signify NV

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

Diversification Opportunities for Highland Global and Signify NV

0.27

Correlation Coefficient

Highland Global  Signify NV

Modest diversification

The 3 months correlation between Highland and Signify is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Highland Global Allocation and Signify NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signify NV 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 Signify NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signify NV has no effect on the direction of Highland Global i.e., Highland Global and Signify NV go up and down completely randomly.

Pair Corralation between Highland Global and Signify NV

Given the investment horizon of 90 days Highland Global Allocation is expected to generate 0.38 times more return on investment than Signify NV. However, Highland Global Allocation is 2.61 times less risky than Signify NV. It trades about 0.14 of its potential returns per unit of risk. Signify NV is currently generating about -0.01 per unit of risk. If you would invest  844.00  in Highland Global Allocation on June 29, 2025 and sell it today you would earn a total of  56.00  from holding Highland Global Allocation or generate 6.64% return on investment over 90 days.

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

Highland Global Allocation  vs.  Signify NV

Highland Global Allo

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Highland Global Allocation are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat unfluctuating essential indicators, Highland Global may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Signify NV

Risk-Adjusted Performance

Weakest

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

Pair Trading with Highland Global and Signify NV

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

The idea behind Highland Global Allocation and Signify NV 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.