Correlation Between Tangshan Jidong and Holitech Technology
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By analyzing existing cross correlation between Tangshan Jidong Cement and Holitech Technology Co, you can compare the effects of market volatilities on Tangshan Jidong and Holitech Technology 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 Tangshan Jidong with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangshan Jidong and Holitech Technology.
Diversification Opportunities for Tangshan Jidong and Holitech Technology
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tangshan and Holitech is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Tangshan Jidong Cement and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Tangshan Jidong 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 Tangshan Jidong Cement are associated (or correlated) with Holitech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holitech Technology has no effect on the direction of Tangshan Jidong i.e., Tangshan Jidong and Holitech Technology go up and down completely randomly.
Pair Corralation between Tangshan Jidong and Holitech Technology
Assuming the 90 days trading horizon Tangshan Jidong Cement is expected to generate 0.43 times more return on investment than Holitech Technology. However, Tangshan Jidong Cement is 2.3 times less risky than Holitech Technology. It trades about 0.1 of its potential returns per unit of risk. Holitech Technology Co is currently generating about -0.11 per unit of risk. If you would invest 590.00 in Tangshan Jidong Cement on September 13, 2024 and sell it today you would earn a total of 21.00 from holding Tangshan Jidong Cement or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tangshan Jidong Cement vs. Holitech Technology Co
Performance |
| Timeline |
| Tangshan Jidong Cement |
| Holitech Technology |
Tangshan Jidong and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangshan Jidong and Holitech Technology
The main advantage of trading using opposite Tangshan Jidong and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangshan Jidong position performs unexpectedly, Holitech Technology 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 Holitech Technology will offset losses from the drop in Holitech Technology's long position.| Tangshan Jidong vs. HeNan Splendor Science | Tangshan Jidong vs. Postal Savings Bank | Tangshan Jidong vs. Jiahe Foods Industry | Tangshan Jidong vs. Xiamen Jihong Package |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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