Correlation Between Holitech Technology and Iflytek Co
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By analyzing existing cross correlation between Holitech Technology Co and Iflytek Co, you can compare the effects of market volatilities on Holitech Technology and Iflytek Co 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 Iflytek Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Iflytek Co.
Diversification Opportunities for Holitech Technology and Iflytek Co
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Iflytek is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Iflytek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iflytek Co 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 Iflytek Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iflytek Co has no effect on the direction of Holitech Technology i.e., Holitech Technology and Iflytek Co go up and down completely randomly.
Pair Corralation between Holitech Technology and Iflytek Co
Assuming the 90 days trading horizon Holitech Technology is expected to generate 6.36 times less return on investment than Iflytek Co. In addition to that, Holitech Technology is 1.15 times more volatile than Iflytek Co. It trades about 0.01 of its total potential returns per unit of risk. Iflytek Co is currently generating about 0.04 per unit of volatility. If you would invest 3,427 in Iflytek Co on September 2, 2024 and sell it today you would earn a total of 1,704 from holding Iflytek Co or generate 49.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Holitech Technology Co vs. Iflytek Co
Performance |
| Timeline |
| Holitech Technology |
| Iflytek Co |
Holitech Technology and Iflytek Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Iflytek Co
The main advantage of trading using opposite Holitech Technology and Iflytek Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Iflytek Co 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 Iflytek Co will offset losses from the drop in Iflytek Co'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 |
| Iflytek Co vs. Jiangxi Hengda Hi Tech | Iflytek Co vs. Zhejiang Yongjin Metal | Iflytek Co vs. China Aluminum International | Iflytek Co vs. Wuhan Yangtze Communication |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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