Correlation Between Shenzhen Noposion and Holitech Technology
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Holitech Technology Co, you can compare the effects of market volatilities on Shenzhen Noposion 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 Shenzhen Noposion with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Holitech Technology.
Diversification Opportunities for Shenzhen Noposion and Holitech Technology
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Holitech is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals 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 Shenzhen Noposion i.e., Shenzhen Noposion and Holitech Technology go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Holitech Technology
Assuming the 90 days trading horizon Shenzhen Noposion is expected to generate 1.67 times less return on investment than Holitech Technology. But when comparing it to its historical volatility, Shenzhen Noposion Agrochemicals is 1.65 times less risky than Holitech Technology. It trades about 0.21 of its potential returns per unit of risk. Holitech Technology Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 192.00 in Holitech Technology Co on September 4, 2024 and sell it today you would earn a total of 38.00 from holding Holitech Technology Co or generate 19.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Holitech Technology Co
Performance |
| Timeline |
| Shenzhen Noposion |
| Holitech Technology |
Shenzhen Noposion and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Holitech Technology
The main advantage of trading using opposite Shenzhen Noposion and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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.| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Rongsheng Petrochemical Co |
| Holitech Technology vs. PetroChina Co Ltd | Holitech Technology vs. China Mobile Limited | Holitech Technology vs. CNOOC Limited | Holitech Technology vs. Ping An Insurance |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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