Correlation Between Highland Global and Repsol SA

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

Diversification Opportunities for Highland Global and Repsol SA

0.0

Correlation Coefficient

Highland Global  Repsol SA

Pay attention - limited upside

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

Pair Corralation between Highland Global and Repsol SA

If you would invest  837.00  in Highland Global Allocation on July 3, 2025 and sell it today you would earn a total of  72.00  from holding Highland Global Allocation or generate 8.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Highland Global Allocation  vs.  Repsol SA

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 13 (%) 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 November 2025.

Repsol SA

Risk-Adjusted Performance

Weakest

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

Pair Trading with Highland Global and Repsol SA

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

The idea behind Highland Global Allocation and Repsol SA 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.