Correlation Between Highway Holdings and 207597DV4
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By analyzing existing cross correlation between Highway Holdings Limited and CONNECTICUT LT PWR, you can compare the effects of market volatilities on Highway Holdings and 207597DV4 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 207597DV4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and 207597DV4.
Diversification Opportunities for Highway Holdings and 207597DV4
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Highway and 207597DV4 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and CONNECTICUT LT PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONNECTICUT LT PWR 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 207597DV4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONNECTICUT LT PWR has no effect on the direction of Highway Holdings i.e., Highway Holdings and 207597DV4 go up and down completely randomly.
Pair Corralation between Highway Holdings and 207597DV4
Given the investment horizon of 90 days Highway Holdings is expected to generate 18.94 times less return on investment than 207597DV4. In addition to that, Highway Holdings is 1.89 times more volatile than CONNECTICUT LT PWR. It trades about 0.0 of its total potential returns per unit of risk. CONNECTICUT LT PWR is currently generating about 0.07 per unit of volatility. If you would invest 10,714 in CONNECTICUT LT PWR on September 1, 2024 and sell it today you would earn a total of 521.00 from holding CONNECTICUT LT PWR or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 36.51% |
| Values | Daily Returns |
Highway Holdings Limited vs. CONNECTICUT LT PWR
Performance |
| Timeline |
| Highway Holdings |
| CONNECTICUT LT PWR |
Highway Holdings and 207597DV4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and 207597DV4
The main advantage of trading using opposite Highway Holdings and 207597DV4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, 207597DV4 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 207597DV4 will offset losses from the drop in 207597DV4'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 |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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