Correlation Between Highway Holdings and CAVA Group,

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Highway Holdings and CAVA Group, 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 CAVA Group, 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 CAVA Group,, you can compare the effects of market volatilities on Highway Holdings and CAVA Group, 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 CAVA Group,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and CAVA Group,.

Diversification Opportunities for Highway Holdings and CAVA Group,

HighwayCAVADiversified AwayHighwayCAVADiversified Away100%
0.34
  Correlation Coefficient

Weak diversification

The 3 months correlation between Highway and CAVA is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, 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 CAVA Group,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAVA Group, has no effect on the direction of Highway Holdings i.e., Highway Holdings and CAVA Group, go up and down completely randomly.

Pair Corralation between Highway Holdings and CAVA Group,

Given the investment horizon of 90 days Highway Holdings Limited is expected to generate 1.76 times more return on investment than CAVA Group,. However, Highway Holdings is 1.76 times more volatile than CAVA Group,. It trades about 0.03 of its potential returns per unit of risk. CAVA Group, is currently generating about 0.03 per unit of risk. If you would invest  183.00  in Highway Holdings Limited on September 18, 2024 and sell it today you would earn a total of  7.00  from holding Highway Holdings Limited or generate 3.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Highway Holdings Limited  vs.  CAVA Group,

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec 010203040
JavaScript chart by amCharts 3.21.15HIHO CAVA
       Timeline  
Highway Holdings 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Highway Holdings Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical indicators, Highway Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec1.822.22.42.62.83
CAVA Group, 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in CAVA Group, are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, CAVA Group, is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec120130140150160170

Highway Holdings and CAVA Group, Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-13.85-10.38-6.9-3.420.0583.436.9710.5214.0617.61 0.010.020.030.040.050.06
JavaScript chart by amCharts 3.21.15HIHO CAVA
       Returns  

Pair Trading with Highway Holdings and CAVA Group,

The main advantage of trading using opposite Highway Holdings and CAVA Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, CAVA Group, 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 CAVA Group, will offset losses from the drop in CAVA Group,'s long position.
The idea behind Highway Holdings Limited and CAVA Group, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Equity Valuation
Check real value of public entities based on technical and fundamental data
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments