Correlation Between Holitech Technology and Shenzhen Mindray
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By analyzing existing cross correlation between Holitech Technology Co and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Holitech Technology and Shenzhen Mindray 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 Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Shenzhen Mindray.
Diversification Opportunities for Holitech Technology and Shenzhen Mindray
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Holitech and Shenzhen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Shenzhen Mindray Bio Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Mindray Bio 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 Mindray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Mindray Bio has no effect on the direction of Holitech Technology i.e., Holitech Technology and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Holitech Technology and Shenzhen Mindray
Assuming the 90 days trading horizon Holitech Technology Co is expected to under-perform the Shenzhen Mindray. In addition to that, Holitech Technology is 2.08 times more volatile than Shenzhen Mindray Bio Medical. It trades about -0.11 of its total potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.23 per unit of volatility. If you would invest 28,712 in Shenzhen Mindray Bio Medical on September 13, 2024 and sell it today you would lose (2,482) from holding Shenzhen Mindray Bio Medical or give up 8.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holitech Technology Co vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Holitech Technology |
| Shenzhen Mindray Bio |
Holitech Technology and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Shenzhen Mindray
The main advantage of trading using opposite Holitech Technology and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Shenzhen Mindray 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 Mindray will offset losses from the drop in Shenzhen Mindray's long position.The idea behind Holitech Technology Co and Shenzhen Mindray Bio Medical 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.
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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