Correlation Between Highway Holdings and CHUBB
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By analyzing existing cross correlation between Highway Holdings Limited and CHUBB P 68, you can compare the effects of market volatilities on Highway Holdings and CHUBB 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 CHUBB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and CHUBB.
Diversification Opportunities for Highway Holdings and CHUBB
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Highway and CHUBB is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and CHUBB P 68 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHUBB P 68 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 CHUBB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHUBB P 68 has no effect on the direction of Highway Holdings i.e., Highway Holdings and CHUBB go up and down completely randomly.
Pair Corralation between Highway Holdings and CHUBB
Given the investment horizon of 90 days Highway Holdings Limited is expected to under-perform the CHUBB. In addition to that, Highway Holdings is 1.73 times more volatile than CHUBB P 68. It trades about -0.05 of its total potential returns per unit of risk. CHUBB P 68 is currently generating about 0.04 per unit of volatility. If you would invest 11,067 in CHUBB P 68 on November 29, 2024 and sell it today you would earn a total of 37.00 from holding CHUBB P 68 or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Highway Holdings Limited vs. CHUBB P 68
Performance |
| Timeline |
| Highway Holdings |
| CHUBB P 68 |
Highway Holdings and CHUBB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and CHUBB
The main advantage of trading using opposite Highway Holdings and CHUBB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, CHUBB 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 CHUBB will offset losses from the drop in CHUBB'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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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