Correlation Between High Arctic and Mccoy Global

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

By analyzing existing cross correlation between High Arctic Energy and Mccoy Global, you can compare the effects of market volatilities on High Arctic and Mccoy Global 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 High Arctic with a short position of Mccoy Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Arctic and Mccoy Global.

Diversification Opportunities for High Arctic and Mccoy Global

0.44

Correlation Coefficient

High Arctic  Mccoy Global

Very weak diversification

The 3 months correlation between High and Mccoy is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding High Arctic Energy and Mccoy Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mccoy Global and High Arctic 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 High Arctic Energy are associated (or correlated) with Mccoy Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mccoy Global has no effect on the direction of High Arctic i.e., High Arctic and Mccoy Global go up and down completely randomly.

Pair Corralation between High Arctic and Mccoy Global

Assuming the 90 days trading horizon High Arctic is expected to generate 1.88 times less return on investment than Mccoy Global. In addition to that, High Arctic is 1.21 times more volatile than Mccoy Global. It trades about 0.04 of its total potential returns per unit of risk. Mccoy Global is currently generating about 0.1 per unit of volatility. If you would invest  336.00  in Mccoy Global on April 23, 2025 and sell it today you would earn a total of  60.00  from holding Mccoy Global or generate 17.86% return on investment over 90 days.

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

High Arctic Energy  vs.  Mccoy Global

High Arctic Energy

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in High Arctic Energy are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, High Arctic may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Mccoy Global

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mccoy Global are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental drivers, Mccoy Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with High Arctic and Mccoy Global

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

The idea behind High Arctic Energy and Mccoy Global 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 Stocks Directory module to find actively traded stocks across global markets.