Correlation Between Holitech Technology and Integrated Electronic
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By analyzing existing cross correlation between Holitech Technology Co and Integrated Electronic Systems, you can compare the effects of market volatilities on Holitech Technology and Integrated Electronic 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 Integrated Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Integrated Electronic.
Diversification Opportunities for Holitech Technology and Integrated Electronic
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Integrated is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Integrated Electronic Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Electronic 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 Integrated Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Electronic has no effect on the direction of Holitech Technology i.e., Holitech Technology and Integrated Electronic go up and down completely randomly.
Pair Corralation between Holitech Technology and Integrated Electronic
Assuming the 90 days trading horizon Holitech Technology is expected to generate 2.17 times less return on investment than Integrated Electronic. In addition to that, Holitech Technology is 1.18 times more volatile than Integrated Electronic Systems. It trades about 0.01 of its total potential returns per unit of risk. Integrated Electronic Systems is currently generating about 0.02 per unit of volatility. If you would invest 686.00 in Integrated Electronic Systems on September 4, 2024 and sell it today you would earn a total of 79.00 from holding Integrated Electronic Systems or generate 11.52% 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. Integrated Electronic Systems
Performance |
| Timeline |
| Holitech Technology |
| Integrated Electronic |
Holitech Technology and Integrated Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Integrated Electronic
The main advantage of trading using opposite Holitech Technology and Integrated Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Integrated Electronic 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 Integrated Electronic will offset losses from the drop in Integrated Electronic's long position.| Holitech Technology vs. PetroChina Co Ltd | Holitech Technology vs. China Mobile Limited | Holitech Technology vs. CNOOC Limited | Holitech Technology vs. Ping An Insurance |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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