Correlation Between Highway Holdings and Global Payment
Can any of the company-specific risk be diversified away by investing in both Highway Holdings and Global Payment 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 Global Payment 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 Global Payment Technologies, you can compare the effects of market volatilities on Highway Holdings and Global Payment 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 Global Payment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and Global Payment.
Diversification Opportunities for Highway Holdings and Global Payment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Highway and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and Global Payment Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payment Techn 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 Global Payment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payment Techn has no effect on the direction of Highway Holdings i.e., Highway Holdings and Global Payment go up and down completely randomly.
Pair Corralation between Highway Holdings and Global Payment
If you would invest 190.00 in Highway Holdings Limited on August 31, 2024 and sell it today you would earn a total of 1.00 from holding Highway Holdings Limited or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highway Holdings Limited vs. Global Payment Technologies
Performance |
| Timeline |
| Highway Holdings |
| Global Payment Techn |
Highway Holdings and Global Payment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and Global Payment
The main advantage of trading using opposite Highway Holdings and Global Payment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, Global Payment 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 Global Payment will offset losses from the drop in Global Payment'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 |
| Global Payment vs. NioCorp Developments Ltd | Global Payment vs. Barrick Gold Corp | Global Payment vs. Highway Holdings Limited | Global Payment vs. Perseus Mining Limited |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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