Correlation Between COMSovereign Holding and Highway Holdings
Can any of the company-specific risk be diversified away by investing in both COMSovereign Holding and Highway Holdings 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 COMSovereign Holding and Highway Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMSovereign Holding Corp and Highway Holdings Limited, you can compare the effects of market volatilities on COMSovereign Holding and Highway Holdings 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 COMSovereign Holding with a short position of Highway Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMSovereign Holding and Highway Holdings.
Diversification Opportunities for COMSovereign Holding and Highway Holdings
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between COMSovereign and Highway is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding COMSovereign Holding Corp and Highway Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highway Holdings and COMSovereign Holding 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 COMSovereign Holding Corp are associated (or correlated) with Highway Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highway Holdings has no effect on the direction of COMSovereign Holding i.e., COMSovereign Holding and Highway Holdings go up and down completely randomly.
Pair Corralation between COMSovereign Holding and Highway Holdings
If you would invest 191.00 in Highway Holdings Limited on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Highway Holdings Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
COMSovereign Holding Corp vs. Highway Holdings Limited
Performance |
| Timeline |
| COMSovereign Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Highway Holdings |
COMSovereign Holding and Highway Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMSovereign Holding and Highway Holdings
The main advantage of trading using opposite COMSovereign Holding and Highway Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMSovereign Holding position performs unexpectedly, Highway Holdings 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 Highway Holdings will offset losses from the drop in Highway Holdings' long position.| COMSovereign Holding vs. Highway Holdings Limited | COMSovereign Holding vs. Bank of America | COMSovereign Holding vs. Lion One Metals | COMSovereign Holding vs. Griffon |
| Highway Holdings vs. Deswell Industries | Highway Holdings vs. Euro Tech Holdings | Highway Holdings vs. China Natural Resources | Highway Holdings vs. Arts Way Manufacturing Co |
Check out your portfolio center.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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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