Correlation Between Melexis NV and Highway Holdings
Can any of the company-specific risk be diversified away by investing in both Melexis NV and Highway Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Melexis NV and Highway Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Melexis NV and Highway Holdings Limited, you can compare the effects of market volatilities on Melexis NV and Highway Holdings 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 Melexis NV with a short position of Highway Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Melexis NV and Highway Holdings.
Diversification Opportunities for Melexis NV and Highway Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Melexis and Highway is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Melexis NV and Highway Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highway Holdings and Melexis NV 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 Melexis NV are associated (or correlated) with Highway Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highway Holdings has no effect on the direction of Melexis NV i.e., Melexis NV and Highway Holdings go up and down completely randomly.
Pair Corralation between Melexis NV and Highway Holdings
If you would invest 191.00 in Highway Holdings Limited on October 23, 2024 and sell it today you would earn a total of 1.00 from holding Highway Holdings Limited or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Melexis NV vs. Highway Holdings Limited
Performance |
| Timeline |
| Melexis NV |
| Highway Holdings |
Melexis NV and Highway Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Melexis NV and Highway Holdings
The main advantage of trading using opposite Melexis NV and Highway Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Melexis NV position performs unexpectedly, Highway Holdings 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 Highway Holdings will offset losses from the drop in Highway Holdings' long position.| Melexis NV vs. Parker Hannifin | Melexis NV vs. Olympic Steel | Melexis NV vs. Highway Holdings Limited | Melexis NV vs. Copperbank Resources Corp |
| Highway Holdings vs. Deswell Industries | Highway Holdings vs. Euro Tech Holdings | Highway Holdings vs. China Natural Resources | Highway Holdings vs. Arts Way Manufacturing Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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