Correlation Between Highway Holdings and 49446RAY5
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By analyzing existing cross correlation between Highway Holdings Limited and KIM 225 01 DEC 31, you can compare the effects of market volatilities on Highway Holdings and 49446RAY5 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 49446RAY5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and 49446RAY5.
Diversification Opportunities for Highway Holdings and 49446RAY5
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Highway and 49446RAY5 is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and KIM 225 01 DEC 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIM 225 01 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 49446RAY5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIM 225 01 has no effect on the direction of Highway Holdings i.e., Highway Holdings and 49446RAY5 go up and down completely randomly.
Pair Corralation between Highway Holdings and 49446RAY5
Given the investment horizon of 90 days Highway Holdings Limited is expected to generate 4.86 times more return on investment than 49446RAY5. However, Highway Holdings is 4.86 times more volatile than KIM 225 01 DEC 31. It trades about 0.05 of its potential returns per unit of risk. KIM 225 01 DEC 31 is currently generating about -0.2 per unit of risk. If you would invest 180.00 in Highway Holdings Limited on September 12, 2024 and sell it today you would earn a total of 16.00 from holding Highway Holdings Limited or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 63.49% |
| Values | Daily Returns |
Highway Holdings Limited vs. KIM 225 01 DEC 31
Performance |
| Timeline |
| Highway Holdings |
| KIM 225 01 |
Highway Holdings and 49446RAY5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and 49446RAY5
The main advantage of trading using opposite Highway Holdings and 49446RAY5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, 49446RAY5 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 49446RAY5 will offset losses from the drop in 49446RAY5'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 Global Correlations module to find global opportunities by holding instruments from different markets.
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