Correlation Between Highway Holdings and PHILIP
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By analyzing existing cross correlation between Highway Holdings Limited and PHILIP MORRIS INTL, you can compare the effects of market volatilities on Highway Holdings and PHILIP 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 PHILIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and PHILIP.
Diversification Opportunities for Highway Holdings and PHILIP
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Highway and PHILIP is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and PHILIP MORRIS INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHILIP MORRIS INTL 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 PHILIP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHILIP MORRIS INTL has no effect on the direction of Highway Holdings i.e., Highway Holdings and PHILIP go up and down completely randomly.
Pair Corralation between Highway Holdings and PHILIP
Given the investment horizon of 90 days Highway Holdings Limited is expected to under-perform the PHILIP. In addition to that, Highway Holdings is 2.83 times more volatile than PHILIP MORRIS INTL. It trades about -0.01 of its total potential returns per unit of risk. PHILIP MORRIS INTL is currently generating about 0.0 per unit of volatility. If you would invest 7,870 in PHILIP MORRIS INTL on September 5, 2024 and sell it today you would lose (126.00) from holding PHILIP MORRIS INTL or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Highway Holdings Limited vs. PHILIP MORRIS INTL
Performance |
| Timeline |
| Highway Holdings |
| PHILIP MORRIS INTL |
Highway Holdings and PHILIP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and PHILIP
The main advantage of trading using opposite Highway Holdings and PHILIP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, PHILIP 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 PHILIP will offset losses from the drop in PHILIP'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 |
| PHILIP vs. Highway Holdings Limited | PHILIP vs. Postal Realty Trust | PHILIP vs. Harmony Gold Mining | PHILIP vs. Solstad Offshore ASA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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