Correlation Between Highway Holdings and STATE
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By analyzing existing cross correlation between Highway Holdings Limited and STATE STREET P, you can compare the effects of market volatilities on Highway Holdings and STATE 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 STATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and STATE.
Diversification Opportunities for Highway Holdings and STATE
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Highway and STATE is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and STATE STREET P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STATE STREET P 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 STATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STATE STREET P has no effect on the direction of Highway Holdings i.e., Highway Holdings and STATE go up and down completely randomly.
Pair Corralation between Highway Holdings and STATE
Given the investment horizon of 90 days Highway Holdings Limited is expected to generate 0.94 times more return on investment than STATE. However, Highway Holdings Limited is 1.07 times less risky than STATE. It trades about 0.03 of its potential returns per unit of risk. STATE STREET P is currently generating about -0.1 per unit of risk. If you would invest 195.00 in Highway Holdings Limited on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Highway Holdings Limited or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highway Holdings Limited vs. STATE STREET P
Performance |
| Timeline |
| Highway Holdings |
| STATE STREET P |
Highway Holdings and STATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and STATE
The main advantage of trading using opposite Highway Holdings and STATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, STATE 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 STATE will offset losses from the drop in STATE'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 |
| STATE vs. Regeneron Pharmaceuticals | STATE vs. Western Acquisition Ventures | STATE vs. Highway Holdings Limited | STATE vs. Supercom |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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