Correlation Between Tieling Newcity and Holitech Technology
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By analyzing existing cross correlation between Tieling Newcity Investment and Holitech Technology Co, you can compare the effects of market volatilities on Tieling Newcity 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 Tieling Newcity with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Holitech Technology.
Diversification Opportunities for Tieling Newcity and Holitech Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tieling and Holitech is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Tieling Newcity 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 Tieling Newcity Investment 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 Tieling Newcity i.e., Tieling Newcity and Holitech Technology go up and down completely randomly.
Pair Corralation between Tieling Newcity and Holitech Technology
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 0.75 times more return on investment than Holitech Technology. However, Tieling Newcity Investment is 1.33 times less risky than Holitech Technology. It trades about 0.0 of its potential returns per unit of risk. Holitech Technology Co is currently generating about -0.01 per unit of risk. If you would invest 342.00 in Tieling Newcity Investment on September 26, 2024 and sell it today you would lose (37.00) from holding Tieling Newcity Investment or give up 10.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Holitech Technology Co
Performance |
| Timeline |
| Tieling Newcity Inve |
| Holitech Technology |
Tieling Newcity and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Holitech Technology
The main advantage of trading using opposite Tieling Newcity and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity 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.| Tieling Newcity vs. Eastroc Beverage Group | Tieling Newcity vs. Sinocat Environmental Technology | Tieling Newcity vs. Bengang Steel Plates | Tieling Newcity vs. Aofu Environmental Technology |
| Holitech Technology vs. Industrial and Commercial | Holitech Technology vs. China Construction Bank | Holitech Technology vs. Agricultural Bank of | Holitech Technology vs. Bank of China |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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