Correlation Between Highway Holdings and Armada Acquisition
Can any of the company-specific risk be diversified away by investing in both Highway Holdings and Armada Acquisition 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 Highway Holdings and Armada Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highway Holdings Limited and Armada Acquisition Corp, you can compare the effects of market volatilities on Highway Holdings and Armada Acquisition 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 Armada Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and Armada Acquisition.
Diversification Opportunities for Highway Holdings and Armada Acquisition
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Highway and Armada is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and Armada Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Acquisition Corp 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 Armada Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armada Acquisition Corp has no effect on the direction of Highway Holdings i.e., Highway Holdings and Armada Acquisition go up and down completely randomly.
Pair Corralation between Highway Holdings and Armada Acquisition
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 | 0.0% |
Values | Daily Returns |
Highway Holdings Limited vs. Armada Acquisition Corp
Performance |
Timeline |
Highway Holdings |
Armada Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Highway Holdings and Armada Acquisition Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Highway Holdings and Armada Acquisition
The main advantage of trading using opposite Highway Holdings and Armada Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, Armada Acquisition 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 Armada Acquisition will offset losses from the drop in Armada Acquisition'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 |
Armada Acquisition vs. Asbury Automotive Group | Armada Acquisition vs. The Gap, | Armada Acquisition vs. Getty Realty | Armada Acquisition vs. Lululemon Athletica |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |