Correlation Between Holitech Technology and Mingchen Health
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By analyzing existing cross correlation between Holitech Technology Co and Mingchen Health Co, you can compare the effects of market volatilities on Holitech Technology and Mingchen Health 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 Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Mingchen Health.
Diversification Opportunities for Holitech Technology and Mingchen Health
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Mingchen is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health 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 Mingchen Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mingchen Health has no effect on the direction of Holitech Technology i.e., Holitech Technology and Mingchen Health go up and down completely randomly.
Pair Corralation between Holitech Technology and Mingchen Health
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.03 times more return on investment than Mingchen Health. However, Holitech Technology is 1.03 times more volatile than Mingchen Health Co. It trades about 0.01 of its potential returns per unit of risk. Mingchen Health Co is currently generating about 0.0 per unit of risk. If you would invest 275.00 in Holitech Technology Co on September 3, 2024 and sell it today you would lose (56.00) from holding Holitech Technology Co or give up 20.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Holitech Technology Co vs. Mingchen Health Co
Performance |
| Timeline |
| Holitech Technology |
| Mingchen Health |
Holitech Technology and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Mingchen Health
The main advantage of trading using opposite Holitech Technology and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Mingchen Health 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 Mingchen Health will offset losses from the drop in Mingchen Health's long position.| Holitech Technology vs. Agricultural Bank of | Holitech Technology vs. China Construction Bank | Holitech Technology vs. Postal Savings Bank | Holitech Technology vs. Bank of Communications |
| Mingchen Health vs. Beijing Wantai Biological | Mingchen Health vs. Aluminum Corp of | Mingchen Health vs. COL Digital Publishing | Mingchen Health vs. Shaanxi Meineng Clean |
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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