Correlation Between ZJBC Information and Holitech Technology
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By analyzing existing cross correlation between ZJBC Information Technology and Holitech Technology Co, you can compare the effects of market volatilities on ZJBC Information 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 ZJBC Information with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZJBC Information and Holitech Technology.
Diversification Opportunities for ZJBC Information and Holitech Technology
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZJBC and Holitech is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding ZJBC Information Technology and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and ZJBC Information 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 ZJBC Information Technology 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 ZJBC Information i.e., ZJBC Information and Holitech Technology go up and down completely randomly.
Pair Corralation between ZJBC Information and Holitech Technology
Assuming the 90 days trading horizon ZJBC Information Technology is expected to generate 1.16 times more return on investment than Holitech Technology. However, ZJBC Information is 1.16 times more volatile than Holitech Technology Co. It trades about 0.14 of its potential returns per unit of risk. Holitech Technology Co is currently generating about 0.07 per unit of risk. If you would invest 228.00 in ZJBC Information Technology on September 27, 2024 and sell it today you would earn a total of 23.00 from holding ZJBC Information Technology or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZJBC Information Technology vs. Holitech Technology Co
Performance |
| Timeline |
| ZJBC Information Tec |
| Holitech Technology |
ZJBC Information and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZJBC Information and Holitech Technology
The main advantage of trading using opposite ZJBC Information and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZJBC Information 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.| ZJBC Information vs. Humanwell Healthcare Group | ZJBC Information vs. Chenzhou Jingui Silver | ZJBC Information vs. Guangdong Silvere Sci | ZJBC Information vs. JCHX Mining Management |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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