Correlation Between Guangzhou KingTeller and Holitech Technology
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By analyzing existing cross correlation between Guangzhou KingTeller Technology and Holitech Technology Co, you can compare the effects of market volatilities on Guangzhou KingTeller 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 Guangzhou KingTeller with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou KingTeller and Holitech Technology.
Diversification Opportunities for Guangzhou KingTeller and Holitech Technology
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Holitech is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou KingTeller Technolog and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Guangzhou KingTeller 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 Guangzhou KingTeller 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 Guangzhou KingTeller i.e., Guangzhou KingTeller and Holitech Technology go up and down completely randomly.
Pair Corralation between Guangzhou KingTeller and Holitech Technology
Assuming the 90 days trading horizon Guangzhou KingTeller is expected to generate 5.32 times less return on investment than Holitech Technology. In addition to that, Guangzhou KingTeller is 1.21 times more volatile than Holitech Technology Co. It trades about 0.08 of its total potential returns per unit of risk. Holitech Technology Co is currently generating about 0.53 per unit of volatility. If you would invest 158.00 in Holitech Technology Co on August 29, 2024 and sell it today you would earn a total of 86.00 from holding Holitech Technology Co or generate 54.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou KingTeller Technolog vs. Holitech Technology Co
Performance |
| Timeline |
| Guangzhou KingTeller |
| Holitech Technology |
Guangzhou KingTeller and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou KingTeller and Holitech Technology
The main advantage of trading using opposite Guangzhou KingTeller and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou KingTeller 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.| Guangzhou KingTeller vs. Agricultural Bank of | Guangzhou KingTeller vs. Industrial and Commercial | Guangzhou KingTeller vs. Bank of China | Guangzhou KingTeller vs. China Construction Bank |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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