Correlation Between Highway Holdings and Destiny Tech100
Can any of the company-specific risk be diversified away by investing in both Highway Holdings and Destiny Tech100 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 Highway Holdings and Destiny Tech100 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highway Holdings Limited and Destiny Tech100, you can compare the effects of market volatilities on Highway Holdings and Destiny Tech100 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 Highway Holdings with a short position of Destiny Tech100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and Destiny Tech100.
Diversification Opportunities for Highway Holdings and Destiny Tech100
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Highway and Destiny is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and Destiny Tech100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Destiny Tech100 and Highway 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 Highway Holdings Limited are associated (or correlated) with Destiny Tech100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Destiny Tech100 has no effect on the direction of Highway Holdings i.e., Highway Holdings and Destiny Tech100 go up and down completely randomly.
Pair Corralation between Highway Holdings and Destiny Tech100
Given the investment horizon of 90 days Highway Holdings Limited is expected to generate 0.21 times more return on investment than Destiny Tech100. However, Highway Holdings Limited is 4.67 times less risky than Destiny Tech100. It trades about 0.0 of its potential returns per unit of risk. Destiny Tech100 is currently generating about -0.28 per unit of risk. If you would invest 186.00 in Highway Holdings Limited on November 27, 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highway Holdings Limited vs. Destiny Tech100
Performance |
| Timeline |
| Highway Holdings |
| Destiny Tech100 |
Highway Holdings and Destiny Tech100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and Destiny Tech100
The main advantage of trading using opposite Highway Holdings and Destiny Tech100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, Destiny Tech100 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 Destiny Tech100 will offset losses from the drop in Destiny Tech100's long position.| Highway Holdings vs. Deswell Industries | Highway Holdings vs. Euro Tech Holdings | Highway Holdings vs. China Natural Resources | Highway Holdings vs. Arts Way Manufacturing Co |
| Destiny Tech100 vs. Philip Morris International | Destiny Tech100 vs. Altria Group | Destiny Tech100 vs. Constellation Brands Class | Destiny Tech100 vs. BRC Inc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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