Correlation Between Holitech Technology and Kuang Chi
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By analyzing existing cross correlation between Holitech Technology Co and Kuang Chi Technologies, you can compare the effects of market volatilities on Holitech Technology and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Kuang Chi.
Diversification Opportunities for Holitech Technology and Kuang Chi
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Kuang is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Holitech Technology i.e., Holitech Technology and Kuang Chi go up and down completely randomly.
Pair Corralation between Holitech Technology and Kuang Chi
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 0.9 times more return on investment than Kuang Chi. However, Holitech Technology Co is 1.11 times less risky than Kuang Chi. It trades about 0.23 of its potential returns per unit of risk. Kuang Chi Technologies is currently generating about 0.01 per unit of risk. If you would invest 192.00 in Holitech Technology Co on September 5, 2024 and sell it today you would earn a total of 42.00 from holding Holitech Technology Co or generate 21.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holitech Technology Co vs. Kuang Chi Technologies
Performance |
| Timeline |
| Holitech Technology |
| Kuang Chi Technologies |
Holitech Technology and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Kuang Chi
The main advantage of trading using opposite Holitech Technology and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi'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 |
| Kuang Chi vs. Cultural Investment Holdings | Kuang Chi vs. Gome Telecom Equipment | Kuang Chi vs. Bus Online Co | Kuang Chi vs. Holitech Technology 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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