Correlation Between Highway Holdings and SOUTHERN
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By analyzing existing cross correlation between Highway Holdings Limited and SOUTHERN CALIF GAS, you can compare the effects of market volatilities on Highway Holdings and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and SOUTHERN.
Diversification Opportunities for Highway Holdings and SOUTHERN
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Highway and SOUTHERN is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and SOUTHERN CALIF GAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF GAS 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF GAS has no effect on the direction of Highway Holdings i.e., Highway Holdings and SOUTHERN go up and down completely randomly.
Pair Corralation between Highway Holdings and SOUTHERN
Given the investment horizon of 90 days Highway Holdings Limited is expected to generate 7.82 times more return on investment than SOUTHERN. However, Highway Holdings is 7.82 times more volatile than SOUTHERN CALIF GAS. It trades about 0.01 of its potential returns per unit of risk. SOUTHERN CALIF GAS is currently generating about -0.03 per unit of risk. If you would invest 206.00 in Highway Holdings Limited on September 3, 2024 and sell it today you would lose (8.00) from holding Highway Holdings Limited or give up 3.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.93% |
| Values | Daily Returns |
Highway Holdings Limited vs. SOUTHERN CALIF GAS
Performance |
| Timeline |
| Highway Holdings |
| SOUTHERN CALIF GAS |
Highway Holdings and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and SOUTHERN
The main advantage of trading using opposite Highway Holdings and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Highway Holdings vs. Deswell Industries | Highway Holdings vs. SCOR PK | Highway Holdings vs. HUMANA INC | Highway Holdings vs. Aquagold International |
| SOUTHERN vs. Highway Holdings Limited | SOUTHERN vs. Iridium Communications | SOUTHERN vs. Supercom | SOUTHERN vs. Nextnav Acquisition Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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