Correlation Between Highway Holdings and Iveda Solutions
Can any of the company-specific risk be diversified away by investing in both Highway Holdings and Iveda Solutions 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 Iveda Solutions 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 Iveda Solutions, you can compare the effects of market volatilities on Highway Holdings and Iveda Solutions 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 Iveda Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and Iveda Solutions.
Diversification Opportunities for Highway Holdings and Iveda Solutions
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Highway and Iveda is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited and Iveda Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iveda Solutions 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 Iveda Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iveda Solutions has no effect on the direction of Highway Holdings i.e., Highway Holdings and Iveda Solutions go up and down completely randomly.
Pair Corralation between Highway Holdings and Iveda Solutions
Given the investment horizon of 90 days Highway Holdings Limited is expected to under-perform the Iveda Solutions. But the stock apears to be less risky and, when comparing its historical volatility, Highway Holdings Limited is 4.57 times less risky than Iveda Solutions. The stock trades about -0.2 of its potential returns per unit of risk. The Iveda Solutions is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 147.00 in Iveda Solutions on September 4, 2025 and sell it today you would lose (32.00) from holding Iveda Solutions or give up 21.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Highway Holdings Limited vs. Iveda Solutions
Performance |
| Timeline |
| Highway Holdings |
| Iveda Solutions |
Highway Holdings and Iveda Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and Iveda Solutions
The main advantage of trading using opposite Highway Holdings and Iveda Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings position performs unexpectedly, Iveda Solutions 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 Iveda Solutions will offset losses from the drop in Iveda Solutions' long position.| Highway Holdings vs. WT Offshore | Highway Holdings vs. The Hanover Insurance | Highway Holdings vs. Corsair Gaming | Highway Holdings vs. Sinclair Broadcast Group |
| Iveda Solutions vs. Barrick Mining | Iveda Solutions vs. Sulliden Mining Capital | Iveda Solutions vs. Fredonia Mining | Iveda Solutions vs. Delta Air Lines |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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