Correlation Between Highway Holdings and BAXTER
Specify exactly 2 symbols:
By analyzing existing cross correlation between Highway Holdings Limited and BAXTER INTL INC, you can compare the effects of market volatilities on Highway Holdings and BAXTER 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 BAXTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and BAXTER.
Diversification Opportunities for Highway Holdings and BAXTER
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Highway and BAXTER is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and BAXTER INTL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAXTER INTL INC 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 BAXTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAXTER INTL INC has no effect on the direction of Highway Holdings i.e., Highway Holdings and BAXTER go up and down completely randomly.
Pair Corralation between Highway Holdings and BAXTER
Given the investment horizon of 90 days Highway Holdings Limited is expected to generate 1.04 times more return on investment than BAXTER. However, Highway Holdings is 1.04 times more volatile than BAXTER INTL INC. It trades about 0.1 of its potential returns per unit of risk. BAXTER INTL INC is currently generating about -0.21 per unit of risk. If you would invest 191.00 in Highway Holdings Limited on September 5, 2024 and sell it today you would earn a total of 5.00 from holding Highway Holdings Limited or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Highway Holdings Limited vs. BAXTER INTL INC
Performance |
| Timeline |
| Highway Holdings |
| BAXTER INTL INC |
Highway Holdings and BAXTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and BAXTER
The main advantage of trading using opposite Highway Holdings and BAXTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, BAXTER 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 BAXTER will offset losses from the drop in BAXTER'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 |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |