Correlation Between Highway Hlds and Alphacentric Hedged

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Can any of the company-specific risk be diversified away by investing in both Highway Hlds and Alphacentric Hedged 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 Hlds and Alphacentric Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highway Hlds and Alphacentric Hedged Market, you can compare the effects of market volatilities on Highway Hlds and Alphacentric Hedged 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 Hlds with a short position of Alphacentric Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Hlds and Alphacentric Hedged.

Diversification Opportunities for Highway Hlds and Alphacentric Hedged

0.41
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Highway and Alphacentric is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Highway Hlds and Alphacentric Hedged Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphacentric Hedged and Highway Hlds 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 Hlds are associated (or correlated) with Alphacentric Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphacentric Hedged has no effect on the direction of Highway Hlds i.e., Highway Hlds and Alphacentric Hedged go up and down completely randomly.

Pair Corralation between Highway Hlds and Alphacentric Hedged

Given the investment horizon of 90 days Highway Hlds is expected to generate 4.54 times more return on investment than Alphacentric Hedged. However, Highway Hlds is 4.54 times more volatile than Alphacentric Hedged Market. It trades about 0.17 of its potential returns per unit of risk. Alphacentric Hedged Market is currently generating about 0.13 per unit of risk. If you would invest  201.00  in Highway Hlds on August 29, 2022 and sell it today you would earn a total of  24.00  from holding Highway Hlds or generate 11.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Highway Hlds  vs.  Alphacentric Hedged Market

 Performance (%) 
       Timeline  
Highway Hlds 
Highway Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Highway Hlds are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical indicators, Highway Hlds is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Highway Price Channel

Alphacentric Hedged 
Alphacentric Performance
0 of 100
Over the last 90 days Alphacentric Hedged Market has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Alphacentric Hedged is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Alphacentric Price Channel

Highway Hlds and Alphacentric Hedged Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Highway Hlds and Alphacentric Hedged

The main advantage of trading using opposite Highway Hlds and Alphacentric Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Hlds position performs unexpectedly, Alphacentric Hedged 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 Alphacentric Hedged will offset losses from the drop in Alphacentric Hedged's long position.
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The idea behind Highway Hlds and Alphacentric Hedged Market 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.
Alphacentric Hedged vs. Jpmorgan Hedged Equity
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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