Correlation Between Holitech Technology and Qingdao Choho
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By analyzing existing cross correlation between Holitech Technology Co and Qingdao Choho Industrial, you can compare the effects of market volatilities on Holitech Technology and Qingdao Choho 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 Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Qingdao Choho.
Diversification Opportunities for Holitech Technology and Qingdao Choho
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Qingdao is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho Industrial 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 Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of Holitech Technology i.e., Holitech Technology and Qingdao Choho go up and down completely randomly.
Pair Corralation between Holitech Technology and Qingdao Choho
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.87 times more return on investment than Qingdao Choho. However, Holitech Technology is 1.87 times more volatile than Qingdao Choho Industrial. It trades about 0.23 of its potential returns per unit of risk. Qingdao Choho Industrial is currently generating about 0.12 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 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. Qingdao Choho Industrial
Performance |
| Timeline |
| Holitech Technology |
| Qingdao Choho Industrial |
Holitech Technology and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Qingdao Choho
The main advantage of trading using opposite Holitech Technology and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Qingdao Choho 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 Qingdao Choho will offset losses from the drop in Qingdao Choho'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 |
| Qingdao Choho vs. Cultural Investment Holdings | Qingdao Choho vs. Gome Telecom Equipment | Qingdao Choho vs. Bus Online Co | Qingdao Choho 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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