Correlation Between Holitech Technology and Kangyue Technology
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By analyzing existing cross correlation between Holitech Technology Co and Kangyue Technology Co, you can compare the effects of market volatilities on Holitech Technology and Kangyue Technology 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 Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Kangyue Technology.
Diversification Opportunities for Holitech Technology and Kangyue Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Kangyue is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology 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 Kangyue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangyue Technology has no effect on the direction of Holitech Technology i.e., Holitech Technology and Kangyue Technology go up and down completely randomly.
Pair Corralation between Holitech Technology and Kangyue Technology
Assuming the 90 days trading horizon Holitech Technology Co is expected to under-perform the Kangyue Technology. But the stock apears to be less risky and, when comparing its historical volatility, Holitech Technology Co is 1.17 times less risky than Kangyue Technology. The stock trades about -0.09 of its potential returns per unit of risk. The Kangyue Technology Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 730.00 in Kangyue Technology Co on September 14, 2024 and sell it today you would lose (13.00) from holding Kangyue Technology Co or give up 1.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holitech Technology Co vs. Kangyue Technology Co
Performance |
| Timeline |
| Holitech Technology |
| Kangyue Technology |
Holitech Technology and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Kangyue Technology
The main advantage of trading using opposite Holitech Technology and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Kangyue Technology 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 Kangyue Technology will offset losses from the drop in Kangyue Technology's long position.| Holitech Technology vs. Industrial and Commercial | Holitech Technology vs. Agricultural Bank of | Holitech Technology vs. China Construction Bank | Holitech Technology vs. Bank of China |
| Kangyue Technology vs. Sino Platinum Metals Co | Kangyue Technology vs. Hangzhou Pinming Software | Kangyue Technology vs. Guangzhou Seagull Kitchen | Kangyue Technology vs. Zhejiang Yayi Metal |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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