Correlation Between Highway Holdings and BRASKM
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By analyzing existing cross correlation between Highway Holdings Limited and BRASKM 5875 31 JAN 50, you can compare the effects of market volatilities on Highway Holdings and BRASKM 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 BRASKM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and BRASKM.
Diversification Opportunities for Highway Holdings and BRASKM
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Highway and BRASKM is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and BRASKM 5875 31 JAN 50 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRASKM 5875 31 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 BRASKM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRASKM 5875 31 has no effect on the direction of Highway Holdings i.e., Highway Holdings and BRASKM go up and down completely randomly.
Pair Corralation between Highway Holdings and BRASKM
Given the investment horizon of 90 days Highway Holdings is expected to generate 2.07 times less return on investment than BRASKM. In addition to that, Highway Holdings is 1.41 times more volatile than BRASKM 5875 31 JAN 50. It trades about 0.05 of its total potential returns per unit of risk. BRASKM 5875 31 JAN 50 is currently generating about 0.15 per unit of volatility. If you would invest 7,660 in BRASKM 5875 31 JAN 50 on September 2, 2024 and sell it today you would earn a total of 615.00 from holding BRASKM 5875 31 JAN 50 or generate 8.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 28.13% |
| Values | Daily Returns |
Highway Holdings Limited vs. BRASKM 5875 31 JAN 50
Performance |
| Timeline |
| Highway Holdings |
| BRASKM 5875 31 |
Highway Holdings and BRASKM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and BRASKM
The main advantage of trading using opposite Highway Holdings and BRASKM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, BRASKM 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 BRASKM will offset losses from the drop in BRASKM'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.
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