Correlation Between Holitech Technology and Shenzhen Kexin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Holitech Technology Co and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Holitech Technology and Shenzhen Kexin 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 Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Shenzhen Kexin.
Diversification Opportunities for Holitech Technology and Shenzhen Kexin
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Holitech and Shenzhen is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu 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 Shenzhen Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of Holitech Technology i.e., Holitech Technology and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Holitech Technology and Shenzhen Kexin
Assuming the 90 days trading horizon Holitech Technology Co is expected to under-perform the Shenzhen Kexin. But the stock apears to be less risky and, when comparing its historical volatility, Holitech Technology Co is 1.69 times less risky than Shenzhen Kexin. The stock trades about -0.03 of its potential returns per unit of risk. The Shenzhen Kexin Communication is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,142 in Shenzhen Kexin Communication on November 7, 2024 and sell it today you would earn a total of 63.00 from holding Shenzhen Kexin Communication or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holitech Technology Co vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Holitech Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shenzhen Kexin Commu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Holitech Technology and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Shenzhen Kexin
The main advantage of trading using opposite Holitech Technology and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Shenzhen Kexin 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 Shenzhen Kexin will offset losses from the drop in Shenzhen Kexin's long position.The idea behind Holitech Technology Co and Shenzhen Kexin Communication pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |