Correlation Between Highway Holdings and STORE Capital
Can any of the company-specific risk be diversified away by investing in both Highway Holdings and STORE Capital 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 STORE Capital 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 STORE Capital Corp, you can compare the effects of market volatilities on Highway Holdings and STORE Capital 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 STORE Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and STORE Capital.
Diversification Opportunities for Highway Holdings and STORE Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Highway and STORE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and STORE Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE Capital Corp 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 STORE Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE Capital Corp has no effect on the direction of Highway Holdings i.e., Highway Holdings and STORE Capital go up and down completely randomly.
Pair Corralation between Highway Holdings and STORE Capital
If you would invest (100.00) in STORE Capital Corp on January 13, 2025 and sell it today you would earn a total of 100.00 from holding STORE Capital Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Highway Holdings Limited vs. STORE Capital Corp
Performance |
| Timeline |
| Highway Holdings |
| STORE Capital Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Highway Holdings and STORE Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and STORE Capital
The main advantage of trading using opposite Highway Holdings and STORE Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, STORE Capital 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 STORE Capital will offset losses from the drop in STORE Capital'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 |
| STORE Capital vs. Hurco Companies | STORE Capital vs. Highway Holdings Limited | STORE Capital vs. flyExclusive, | STORE Capital vs. Emerson Electric |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |