Correlation Between Highway Holdings and Jacquet Metal

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Can any of the company-specific risk be diversified away by investing in both Highway Holdings and Jacquet Metal 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 Jacquet Metal 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 Jacquet Metal Service, you can compare the effects of market volatilities on Highway Holdings and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and Jacquet Metal.

Diversification Opportunities for Highway Holdings and Jacquet Metal

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Highway and Jacquet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Highway Holdings i.e., Highway Holdings and Jacquet Metal go up and down completely randomly.

Pair Corralation between Highway Holdings and Jacquet Metal

If you would invest (100.00)  in Jacquet Metal Service on September 6, 2022 and sell it today you would earn a total of  100.00  from holding Jacquet Metal Service or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Highway Holdings Limited  vs.  Jacquet Metal Service

 Performance (%) 
       Timeline  
Highway Holdings 
Highway Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Highway Holdings Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite weak technical indicators, Highway Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2023.

Highway Price Channel

Jacquet Metal Service 
Jacquet Performance
0 of 100
Over the last 90 days Jacquet Metal Service has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Jacquet Metal is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Highway Holdings and Jacquet Metal Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Highway Holdings and Jacquet Metal

The main advantage of trading using opposite Highway Holdings and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.
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The idea behind Highway Holdings Limited and Jacquet Metal Service 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.
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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