Correlation Between Holitech Technology and Changzhou Evergreen
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By analyzing existing cross correlation between Holitech Technology Co and Changzhou Evergreen Technology, you can compare the effects of market volatilities on Holitech Technology and Changzhou Evergreen 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 Changzhou Evergreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Changzhou Evergreen.
Diversification Opportunities for Holitech Technology and Changzhou Evergreen
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Changzhou is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Changzhou Evergreen Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Evergreen 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 Changzhou Evergreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Evergreen has no effect on the direction of Holitech Technology i.e., Holitech Technology and Changzhou Evergreen go up and down completely randomly.
Pair Corralation between Holitech Technology and Changzhou Evergreen
Assuming the 90 days trading horizon Holitech Technology is expected to generate 1.63 times less return on investment than Changzhou Evergreen. In addition to that, Holitech Technology is 1.03 times more volatile than Changzhou Evergreen Technology. It trades about 0.01 of its total potential returns per unit of risk. Changzhou Evergreen Technology is currently generating about 0.02 per unit of volatility. If you would invest 1,861 in Changzhou Evergreen Technology on August 26, 2024 and sell it today you would lose (57.00) from holding Changzhou Evergreen Technology or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.37% |
| Values | Daily Returns |
Holitech Technology Co vs. Changzhou Evergreen Technology
Performance |
| Timeline |
| Holitech Technology |
| Changzhou Evergreen |
Holitech Technology and Changzhou Evergreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Changzhou Evergreen
The main advantage of trading using opposite Holitech Technology and Changzhou Evergreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Changzhou Evergreen 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 Changzhou Evergreen will offset losses from the drop in Changzhou Evergreen's long position.| Holitech Technology vs. Jilin Chemical Fibre | Holitech Technology vs. Marssenger Kitchenware Co | Holitech Technology vs. Hubei Dinglong Chemical | Holitech Technology vs. Fujian Longzhou Transportation |
| Changzhou Evergreen vs. Cambricon Technologies Corp | Changzhou Evergreen vs. Loongson Technology Corp | Changzhou Evergreen vs. Chongqing Road Bridge | Changzhou Evergreen vs. Shenzhen Fortune Trend |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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