Correlation Between Highway Holdings and 437076CK6
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By analyzing existing cross correlation between Highway Holdings Limited and HD 275 15 SEP 51, you can compare the effects of market volatilities on Highway Holdings and 437076CK6 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 437076CK6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and 437076CK6.
Diversification Opportunities for Highway Holdings and 437076CK6
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Highway and 437076CK6 is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and HD 275 15 SEP 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HD 275 15 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 437076CK6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HD 275 15 has no effect on the direction of Highway Holdings i.e., Highway Holdings and 437076CK6 go up and down completely randomly.
Pair Corralation between Highway Holdings and 437076CK6
Given the investment horizon of 90 days Highway Holdings is expected to generate 6.09 times less return on investment than 437076CK6. But when comparing it to its historical volatility, Highway Holdings Limited is 2.56 times less risky than 437076CK6. It trades about 0.06 of its potential returns per unit of risk. HD 275 15 SEP 51 is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 6,376 in HD 275 15 SEP 51 on August 28, 2024 and sell it today you would earn a total of 416.00 from holding HD 275 15 SEP 51 or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highway Holdings Limited vs. HD 275 15 SEP 51
Performance |
| Timeline |
| Highway Holdings |
| HD 275 15 |
Highway Holdings and 437076CK6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and 437076CK6
The main advantage of trading using opposite Highway Holdings and 437076CK6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, 437076CK6 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 437076CK6 will offset losses from the drop in 437076CK6'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 |
| 437076CK6 vs. Guangdong Investment Limited | 437076CK6 vs. SFL Corporation | 437076CK6 vs. Highway Holdings Limited | 437076CK6 vs. CapitaLand Investment Limited |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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