Correlation Between VENTAS and Highway Holdings
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By analyzing existing cross correlation between VENTAS RLTY LTD and Highway Holdings Limited, you can compare the effects of market volatilities on VENTAS 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 VENTAS with a short position of Highway Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of VENTAS and Highway Holdings.
Diversification Opportunities for VENTAS and Highway Holdings
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between VENTAS and Highway is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding VENTAS RLTY LTD and Highway Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highway Holdings and VENTAS 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 VENTAS RLTY LTD 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 VENTAS i.e., VENTAS and Highway Holdings go up and down completely randomly.
Pair Corralation between VENTAS and Highway Holdings
Assuming the 90 days trading horizon VENTAS RLTY LTD is expected to under-perform the Highway Holdings. But the bond apears to be less risky and, when comparing its historical volatility, VENTAS RLTY LTD is 1.33 times less risky than Highway Holdings. The bond trades about -0.23 of its potential returns per unit of risk. The Highway Holdings Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. 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 Together |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
VENTAS RLTY LTD vs. Highway Holdings Limited
Performance |
| Timeline |
| VENTAS RLTY LTD |
| Highway Holdings |
VENTAS and Highway Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VENTAS and Highway Holdings
The main advantage of trading using opposite VENTAS and Highway Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VENTAS 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.| VENTAS vs. AEP TEX INC | VENTAS vs. US BANK NATIONAL | VENTAS vs. Applied Blockchain | VENTAS vs. BigBearai Holdings |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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