Correlation Between Holitech Technology and Fujian Longzhou
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By analyzing existing cross correlation between Holitech Technology Co and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Holitech Technology and Fujian Longzhou 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 Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Fujian Longzhou.
Diversification Opportunities for Holitech Technology and Fujian Longzhou
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Holitech and Fujian is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran 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 Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Holitech Technology i.e., Holitech Technology and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Holitech Technology and Fujian Longzhou
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.0 times more return on investment than Fujian Longzhou. However, Holitech Technology Co is 1.0 times less risky than Fujian Longzhou. It trades about 0.27 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about 0.23 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holitech Technology Co vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Holitech Technology |
| Fujian Longzhou Tran |
Holitech Technology and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Fujian Longzhou
The main advantage of trading using opposite Holitech Technology and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou'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 |
| Fujian Longzhou vs. Agricultural Bank of | Fujian Longzhou vs. Industrial and Commercial | Fujian Longzhou vs. Bank of China | Fujian Longzhou vs. China Construction Bank |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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