Correlation Between Holitech Technology and Shaanxi Energy
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By analyzing existing cross correlation between Holitech Technology Co and Shaanxi Energy Investment, you can compare the effects of market volatilities on Holitech Technology and Shaanxi Energy 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 Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Shaanxi Energy.
Diversification Opportunities for Holitech Technology and Shaanxi Energy
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Holitech and Shaanxi is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy Investment 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 Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Holitech Technology i.e., Holitech Technology and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Holitech Technology and Shaanxi Energy
Assuming the 90 days trading horizon Holitech Technology Co is expected to under-perform the Shaanxi Energy. In addition to that, Holitech Technology is 2.13 times more volatile than Shaanxi Energy Investment. It trades about -0.01 of its total potential returns per unit of risk. Shaanxi Energy Investment is currently generating about 0.03 per unit of volatility. If you would invest 862.00 in Shaanxi Energy Investment on September 26, 2024 and sell it today you would earn a total of 104.00 from holding Shaanxi Energy Investment or generate 12.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holitech Technology Co vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Holitech Technology |
| Shaanxi Energy Investment |
Holitech Technology and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Shaanxi Energy
The main advantage of trading using opposite Holitech Technology and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Shaanxi Energy 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.| Holitech Technology vs. Industrial and Commercial | Holitech Technology vs. China Construction Bank | Holitech Technology vs. Agricultural Bank of | Holitech Technology vs. Bank of China |
| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. Elite Color Environmental | Shaanxi Energy vs. Shanghai Construction Group | Shaanxi Energy vs. Keeson Technology Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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