Correlation Between Highwoods Properties and Growth Fund

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

By analyzing existing cross correlation between Highwoods Properties and Growth Fund Of, you can compare the effects of market volatilities on Highwoods Properties and Growth Fund 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 Highwoods Properties with a short position of Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highwoods Properties and Growth Fund.

Diversification Opportunities for Highwoods Properties and Growth Fund

0.27

Correlation Coefficient

Highwoods Properties  Growth Fund

Modest diversification

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

Pair Corralation between Highwoods Properties and Growth Fund

Considering the 90-day investment horizon Highwoods Properties is expected to generate 45.38 times less return on investment than Growth Fund. In addition to that, Highwoods Properties is 1.54 times more volatile than Growth Fund Of. It trades about 0.0 of its total potential returns per unit of risk. Growth Fund Of is currently generating about 0.29 per unit of volatility. If you would invest  6,908  in Growth Fund Of on May 7, 2025 and sell it today you would earn a total of  1,136  from holding Growth Fund Of or generate 16.44% return on investment over 90 days.

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

Highwoods Properties  vs.  Growth Fund Of

Highwoods Properties

Risk-Adjusted Performance

Weakest

Over the last 90 days Highwoods Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, Highwoods Properties is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Growth Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Growth Fund Of are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental drivers, Growth Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Highwoods Properties and Growth Fund

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

The idea behind Highwoods Properties and Growth Fund Of 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.