Correlation Between Holitech Technology and Hongrun Construction
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By analyzing existing cross correlation between Holitech Technology Co and Hongrun Construction Group, you can compare the effects of market volatilities on Holitech Technology and Hongrun Construction 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 Hongrun Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Hongrun Construction.
Diversification Opportunities for Holitech Technology and Hongrun Construction
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Holitech and Hongrun is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Hongrun Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hongrun Construction 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 Hongrun Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hongrun Construction has no effect on the direction of Holitech Technology i.e., Holitech Technology and Hongrun Construction go up and down completely randomly.
Pair Corralation between Holitech Technology and Hongrun Construction
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.3 times more return on investment than Hongrun Construction. However, Holitech Technology is 1.3 times more volatile than Hongrun Construction Group. It trades about 0.15 of its potential returns per unit of risk. Hongrun Construction Group is currently generating about 0.06 per unit of risk. If you would invest 130.00 in Holitech Technology Co on September 1, 2024 and sell it today you would earn a total of 89.00 from holding Holitech Technology Co or generate 68.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holitech Technology Co vs. Hongrun Construction Group
Performance |
| Timeline |
| Holitech Technology |
| Hongrun Construction |
Holitech Technology and Hongrun Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Hongrun Construction
The main advantage of trading using opposite Holitech Technology and Hongrun Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Hongrun Construction 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 Hongrun Construction will offset losses from the drop in Hongrun Construction'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 |
| Hongrun Construction vs. 159681 | Hongrun Construction vs. 159005 | Hongrun Construction vs. Loctek Ergonomic Technology | Hongrun Construction vs. 516220 |
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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