Correlation Between Holitech Technology and Hubeiyichang Transportation
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By analyzing existing cross correlation between Holitech Technology Co and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Holitech Technology and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Hubeiyichang Transportation.
Diversification Opportunities for Holitech Technology and Hubeiyichang Transportation
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Hubeiyichang is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Holitech Technology i.e., Holitech Technology and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Holitech Technology and Hubeiyichang Transportation
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.75 times more return on investment than Hubeiyichang Transportation. However, Holitech Technology is 1.75 times more volatile than Hubeiyichang Transportation Group. It trades about 0.15 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.07 per unit of risk. If you would invest 130.00 in Holitech Technology Co on September 2, 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holitech Technology Co vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Holitech Technology |
| Hubeiyichang Transportation |
Holitech Technology and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Hubeiyichang Transportation
The main advantage of trading using opposite Holitech Technology and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation'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 |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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