Correlation Between Corus Entertainment and HST Global

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

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

Diversification Opportunities for Corus Entertainment and HST Global

-0.62

Correlation Coefficient

Corus Entertainment  HST Global

Excellent diversification

The 3 months correlation between Corus and HST is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Corus Entertainment and HST Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HST Global and Corus Entertainment 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 Corus Entertainment are associated (or correlated) with HST Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HST Global has no effect on the direction of Corus Entertainment i.e., Corus Entertainment and HST Global go up and down completely randomly.

Pair Corralation between Corus Entertainment and HST Global

Assuming the 90 days trading horizon Corus Entertainment is expected to under-perform the HST Global. But the stock apears to be less risky and, when comparing its historical volatility, Corus Entertainment is 2.51 times less risky than HST Global. The stock trades about -0.09 of its potential returns per unit of risk. The HST Global is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  17.00  in HST Global on January 24, 2024 and sell it today you would earn a total of  95.00  from holding HST Global or generate 558.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.46%
Values	Daily Returns

Corus Entertainment  vs.  HST Global

Corus Entertainment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Corus Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental drivers remain comparatively stable which may send shares a bit higher in May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

HST Global

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in HST Global are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, HST Global exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Corus Entertainment and HST Global

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

The idea behind Corus Entertainment and HST 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.