Correlation Between Highway Holdings and AXASA
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By analyzing existing cross correlation between Highway Holdings Limited and AXASA 6379, you can compare the effects of market volatilities on Highway Holdings and AXASA 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 AXASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and AXASA.
Diversification Opportunities for Highway Holdings and AXASA
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Highway and AXASA is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and AXASA 6379 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXASA 6379 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 AXASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXASA 6379 has no effect on the direction of Highway Holdings i.e., Highway Holdings and AXASA go up and down completely randomly.
Pair Corralation between Highway Holdings and AXASA
Given the investment horizon of 90 days Highway Holdings Limited is expected to generate 1.8 times more return on investment than AXASA. However, Highway Holdings is 1.8 times more volatile than AXASA 6379. It trades about 0.01 of its potential returns per unit of risk. AXASA 6379 is currently generating about -0.02 per unit of risk. If you would invest 214.00 in Highway Holdings Limited on September 2, 2024 and sell it today you would lose (16.00) from holding Highway Holdings Limited or give up 7.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.3% |
| Values | Daily Returns |
Highway Holdings Limited vs. AXASA 6379
Performance |
| Timeline |
| Highway Holdings |
| AXASA 6379 |
Highway Holdings and AXASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and AXASA
The main advantage of trading using opposite Highway Holdings and AXASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, AXASA 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 AXASA will offset losses from the drop in AXASA'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 |
| AXASA vs. MYR Group | AXASA vs. Emerson Electric | AXASA vs. Highway Holdings Limited | AXASA vs. Hurco Companies |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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