Correlation Between Holitech Technology and Shandong Sanyuan
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By analyzing existing cross correlation between Holitech Technology Co and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Holitech Technology and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Shandong Sanyuan.
Diversification Opportunities for Holitech Technology and Shandong Sanyuan
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Holitech and Shandong is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Holitech Technology i.e., Holitech Technology and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Holitech Technology and Shandong Sanyuan
Assuming the 90 days trading horizon Holitech Technology Co is expected to under-perform the Shandong Sanyuan. In addition to that, Holitech Technology is 1.51 times more volatile than Shandong Sanyuan Biotechnology. It trades about -0.05 of its total potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about -0.07 per unit of volatility. If you would invest 2,772 in Shandong Sanyuan Biotechnology on October 30, 2024 and sell it today you would lose (171.00) from holding Shandong Sanyuan Biotechnology or give up 6.17% 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. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Holitech Technology |
| Shandong Sanyuan Bio |
Holitech Technology and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Shandong Sanyuan
The main advantage of trading using opposite Holitech Technology and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.The idea behind Holitech Technology Co and Shandong Sanyuan Biotechnology 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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