Correlation Between Highway Holdings and Jones Lang
Can any of the company-specific risk be diversified away by investing in both Highway Holdings and Jones Lang 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 Jones Lang 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 Jones Lang LaSalle, you can compare the effects of market volatilities on Highway Holdings and Jones Lang 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 Jones Lang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and Jones Lang.
Diversification Opportunities for Highway Holdings and Jones Lang
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Highway and Jones is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and Jones Lang LaSalle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jones Lang LaSalle 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 Jones Lang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jones Lang LaSalle has no effect on the direction of Highway Holdings i.e., Highway Holdings and Jones Lang go up and down completely randomly.
Pair Corralation between Highway Holdings and Jones Lang
Given the investment horizon of 90 days Highway Holdings Limited is expected to generate 1.14 times more return on investment than Jones Lang. However, Highway Holdings is 1.14 times more volatile than Jones Lang LaSalle. It trades about 0.12 of its potential returns per unit of risk. Jones Lang LaSalle is currently generating about -0.18 per unit of risk. If you would invest 199.00 in Highway Holdings Limited on January 24, 2024 and sell it today you would earn a total of 9.00 from holding Highway Holdings Limited or generate 4.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Highway Holdings Limited vs. Jones Lang LaSalle
Performance |
Timeline |
Highway Holdings |
Jones Lang LaSalle |
Highway Holdings and Jones Lang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Highway Holdings and Jones Lang
The main advantage of trading using opposite Highway Holdings and Jones Lang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, Jones Lang 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 Jones Lang will offset losses from the drop in Jones Lang'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 |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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