Correlation Between Highcon Systems and Augwind Energy
Can any of the company-specific risk be diversified away by investing in both Highcon Systems and Augwind Energy 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 Highcon Systems and Augwind Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highcon Systems and Augwind Energy Tech, you can compare the effects of market volatilities on Highcon Systems and Augwind Energy 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 Highcon Systems with a short position of Augwind Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highcon Systems and Augwind Energy.
Diversification Opportunities for Highcon Systems and Augwind Energy
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Highcon and Augwind is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Highcon Systems and Augwind Energy Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Augwind Energy Tech and Highcon Systems 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 Highcon Systems are associated (or correlated) with Augwind Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Augwind Energy Tech has no effect on the direction of Highcon Systems i.e., Highcon Systems and Augwind Energy go up and down completely randomly.
Pair Corralation between Highcon Systems and Augwind Energy
Assuming the 90 days trading horizon Highcon Systems is expected to under-perform the Augwind Energy. But the stock apears to be less risky and, when comparing its historical volatility, Highcon Systems is 1.42 times less risky than Augwind Energy. The stock trades about -0.06 of its potential returns per unit of risk. The Augwind Energy Tech is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 47,640 in Augwind Energy Tech on September 3, 2024 and sell it today you would earn a total of 19,390 from holding Augwind Energy Tech or generate 40.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highcon Systems vs. Augwind Energy Tech
Performance |
| Timeline |
| Highcon Systems |
| Augwind Energy Tech |
Highcon Systems and Augwind Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highcon Systems and Augwind Energy
The main advantage of trading using opposite Highcon Systems and Augwind Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highcon Systems position performs unexpectedly, Augwind Energy 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 Augwind Energy will offset losses from the drop in Augwind Energy's long position.| Highcon Systems vs. Magic Software Enterprises | Highcon Systems vs. Shagrir Group Vehicle | Highcon Systems vs. Priortech | Highcon Systems vs. Orbit Technologies |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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