Correlation Between Saferoads Holdings and HG High

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

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

Diversification Opportunities for Saferoads Holdings and HG High

0.16

Correlation Coefficient

Saferoads Holdings  HG High

Average diversification

The 3 months correlation between Saferoads and HCF is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Saferoads Holdings and HG High Conviction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HG High Conviction and Saferoads Holdings 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 Saferoads Holdings are associated (or correlated) with HG High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HG High Conviction has no effect on the direction of Saferoads Holdings i.e., Saferoads Holdings and HG High go up and down completely randomly.

Pair Corralation between Saferoads Holdings and HG High

Assuming the 90 days trading horizon Saferoads Holdings is expected to generate 0.5 times more return on investment than HG High. However, Saferoads Holdings is 1.99 times less risky than HG High. It trades about -0.01 of its potential returns per unit of risk. HG High Conviction is currently generating about -0.14 per unit of risk. If you would invest  11.00  in Saferoads Holdings on April 25, 2025 and sell it today you would lose (2.30) from holding Saferoads Holdings or give up 20.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.16%
Values	Daily Returns

Saferoads Holdings  vs.  HG High Conviction

Saferoads Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Saferoads Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical indicators, Saferoads Holdings is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

HG High Conviction

Risk-Adjusted Performance

Very Weak

Over the last 90 days HG High Conviction has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Saferoads Holdings and HG High

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

The idea behind Saferoads Holdings and HG High Conviction 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.