Correlation Between Holitech Technology and Iat Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Holitech Technology Co and Iat Automobile Technology, you can compare the effects of market volatilities on Holitech Technology and Iat Automobile 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 Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Iat Automobile.
Diversification Opportunities for Holitech Technology and Iat Automobile
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Holitech and Iat is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile 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 Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Holitech Technology i.e., Holitech Technology and Iat Automobile go up and down completely randomly.
Pair Corralation between Holitech Technology and Iat Automobile
Assuming the 90 days trading horizon Holitech Technology Co is expected to under-perform the Iat Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Holitech Technology Co is 1.05 times less risky than Iat Automobile. The stock trades about -0.05 of its potential returns per unit of risk. The Iat Automobile Technology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,207 in Iat Automobile Technology on September 12, 2024 and sell it today you would earn a total of 128.00 from holding Iat Automobile Technology or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Holitech Technology Co vs. Iat Automobile Technology
Performance |
| Timeline |
| Holitech Technology |
| Iat Automobile Technology |
Holitech Technology and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Iat Automobile
The main advantage of trading using opposite Holitech Technology and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile's long position.The idea behind Holitech Technology Co and Iat Automobile Technology 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.
| Iat Automobile vs. Lutian Machinery Co | Iat Automobile vs. PetroChina Co Ltd | Iat Automobile vs. Bank of China | Iat Automobile vs. Gansu Jiu Steel |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |