Correlation Between Highway Holdings and Future Vision
Can any of the company-specific risk be diversified away by investing in both Highway Holdings and Future Vision 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 Future Vision 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 Future Vision II, you can compare the effects of market volatilities on Highway Holdings and Future Vision 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 Future Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and Future Vision.
Diversification Opportunities for Highway Holdings and Future Vision
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Highway and Future is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and Future Vision II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Future Vision II 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 Future Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Future Vision II has no effect on the direction of Highway Holdings i.e., Highway Holdings and Future Vision go up and down completely randomly.
Pair Corralation between Highway Holdings and Future Vision
Given the investment horizon of 90 days Highway Holdings is expected to generate 75.25 times less return on investment than Future Vision. But when comparing it to its historical volatility, Highway Holdings Limited is 29.35 times less risky than Future Vision. It trades about 0.05 of its potential returns per unit of risk. Future Vision II is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Future Vision II on September 2, 2024 and sell it today you would earn a total of 1,012 from holding Future Vision II or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.63% |
| Values | Daily Returns |
Highway Holdings Limited vs. Future Vision II
Performance |
| Timeline |
| Highway Holdings |
| Future Vision II |
Highway Holdings and Future Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and Future Vision
The main advantage of trading using opposite Highway Holdings and Future Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, Future Vision 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 Future Vision will offset losses from the drop in Future Vision'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 |
| Future Vision vs. dMY Squared Technology | Future Vision vs. YHN Acquisition I | Future Vision vs. YHN Acquisition I | Future Vision vs. PowerUp Acquisition Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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