Correlation Between Holitech Technology and Huatian Hotel
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By analyzing existing cross correlation between Holitech Technology Co and Huatian Hotel Group, you can compare the effects of market volatilities on Holitech Technology and Huatian Hotel 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 Holitech Technology with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Huatian Hotel.
Diversification Opportunities for Holitech Technology and Huatian Hotel
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Huatian is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Huatian Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huatian Hotel Group and Holitech Technology 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 Holitech Technology Co are associated (or correlated) with Huatian Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huatian Hotel Group has no effect on the direction of Holitech Technology i.e., Holitech Technology and Huatian Hotel go up and down completely randomly.
Pair Corralation between Holitech Technology and Huatian Hotel
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.36 times more return on investment than Huatian Hotel. However, Holitech Technology is 1.36 times more volatile than Huatian Hotel Group. It trades about 0.04 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about 0.03 per unit of risk. If you would invest 187.00 in Holitech Technology Co on September 1, 2024 and sell it today you would earn a total of 32.00 from holding Holitech Technology Co or generate 17.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holitech Technology Co vs. Huatian Hotel Group
Performance |
| Timeline |
| Holitech Technology |
| Huatian Hotel Group |
Holitech Technology and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Huatian Hotel
The main advantage of trading using opposite Holitech Technology and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Huatian Hotel 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 Huatian Hotel will offset losses from the drop in Huatian Hotel's long position.| Holitech Technology vs. Cultural Investment Holdings | Holitech Technology vs. Gome Telecom Equipment | Holitech Technology vs. Bus Online Co | Holitech Technology vs. Zotye Automobile Co |
| Huatian Hotel vs. Cultural Investment Holdings | Huatian Hotel vs. Gome Telecom Equipment | Huatian Hotel vs. Bus Online Co | Huatian Hotel vs. Holitech Technology Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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