Correlation Between Holitech Technology and Shandong Polymer
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By analyzing existing cross correlation between Holitech Technology Co and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Holitech Technology and Shandong Polymer 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 Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Shandong Polymer.
Diversification Opportunities for Holitech Technology and Shandong Polymer
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Holitech and Shandong is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Shandong Polymer Biochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Polymer Bio 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 Shandong Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Polymer Bio has no effect on the direction of Holitech Technology i.e., Holitech Technology and Shandong Polymer go up and down completely randomly.
Pair Corralation between Holitech Technology and Shandong Polymer
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.08 times more return on investment than Shandong Polymer. However, Holitech Technology is 1.08 times more volatile than Shandong Polymer Biochemicals. It trades about 0.22 of its potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about 0.11 per unit of risk. If you would invest 192.00 in Holitech Technology Co on September 4, 2024 and sell it today you would earn a total of 38.00 from holding Holitech Technology Co or generate 19.79% 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. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Holitech Technology |
| Shandong Polymer Bio |
Holitech Technology and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Shandong Polymer
The main advantage of trading using opposite Holitech Technology and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Shandong Polymer 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 Shandong Polymer will offset losses from the drop in Shandong Polymer'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 |
| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Wanhua Chemical Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Rongsheng Petrochemical Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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