Correlation Between Highway Holdings and Oracle
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By analyzing existing cross correlation between Highway Holdings Limited and Oracle Corp 58, you can compare the effects of market volatilities on Highway Holdings and Oracle 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 Oracle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and Oracle.
Diversification Opportunities for Highway Holdings and Oracle
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Highway and Oracle is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and Oracle Corp 58 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oracle Corp 58 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 Oracle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oracle Corp 58 has no effect on the direction of Highway Holdings i.e., Highway Holdings and Oracle go up and down completely randomly.
Pair Corralation between Highway Holdings and Oracle
Given the investment horizon of 90 days Highway Holdings Limited is expected to generate 9.15 times more return on investment than Oracle. However, Highway Holdings is 9.15 times more volatile than Oracle Corp 58. It trades about 0.1 of its potential returns per unit of risk. Oracle Corp 58 is currently generating about 0.04 per unit of risk. If you would invest 191.00 in Highway Holdings Limited on September 5, 2024 and sell it today you would earn a total of 5.00 from holding Highway Holdings Limited or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Highway Holdings Limited vs. Oracle Corp 58
Performance |
| Timeline |
| Highway Holdings |
| Oracle Corp 58 |
Highway Holdings and Oracle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and Oracle
The main advantage of trading using opposite Highway Holdings and Oracle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, Oracle 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 Oracle will offset losses from the drop in Oracle'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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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