Correlation Between Highway Holdings and Evofem Biosciences
Can any of the company-specific risk be diversified away by investing in both Highway Holdings and Evofem Biosciences 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 Evofem Biosciences 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 Evofem Biosciences, you can compare the effects of market volatilities on Highway Holdings and Evofem Biosciences 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 Evofem Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and Evofem Biosciences.
Diversification Opportunities for Highway Holdings and Evofem Biosciences
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Highway and Evofem is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and Evofem Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evofem Biosciences 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 Evofem Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evofem Biosciences has no effect on the direction of Highway Holdings i.e., Highway Holdings and Evofem Biosciences go up and down completely randomly.
Pair Corralation between Highway Holdings and Evofem Biosciences
If you would invest 210.00 in Highway Holdings Limited on September 1, 2024 and sell it today you would lose (12.00) from holding Highway Holdings Limited or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Highway Holdings Limited vs. Evofem Biosciences
Performance |
| Timeline |
| Highway Holdings |
| Evofem Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Highway Holdings and Evofem Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and Evofem Biosciences
The main advantage of trading using opposite Highway Holdings and Evofem Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, Evofem Biosciences 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 Evofem Biosciences will offset losses from the drop in Evofem Biosciences' 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 |
| Evofem Biosciences vs. Gentex | Evofem Biosciences vs. Magna International | Evofem Biosciences vs. PACCAR Inc | Evofem Biosciences vs. Aeye 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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