Correlation Between Holitech Technology and Hubei Xingfa
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By analyzing existing cross correlation between Holitech Technology Co and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Holitech Technology and Hubei Xingfa 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 Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Hubei Xingfa.
Diversification Opportunities for Holitech Technology and Hubei Xingfa
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Holitech and Hubei is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals 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 Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Holitech Technology i.e., Holitech Technology and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Holitech Technology and Hubei Xingfa
Assuming the 90 days trading horizon Holitech Technology Co is expected to under-perform the Hubei Xingfa. In addition to that, Holitech Technology is 1.1 times more volatile than Hubei Xingfa Chemicals. It trades about -0.03 of its total potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about 0.04 per unit of volatility. If you would invest 2,168 in Hubei Xingfa Chemicals on November 6, 2024 and sell it today you would earn a total of 19.00 from holding Hubei Xingfa Chemicals or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holitech Technology Co vs. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Holitech Technology |
| Hubei Xingfa Chemicals |
Holitech Technology and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Hubei Xingfa
The main advantage of trading using opposite Holitech Technology and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa's long position.| Holitech Technology vs. Shenzhen Centralcon Investment | Holitech Technology vs. Miracll Chemicals Co | Holitech Technology vs. Henan Shuanghui Investment | Holitech Technology vs. Aba Chemicals Corp |
| Hubei Xingfa vs. Glodon Software Co | Hubei Xingfa vs. Easyhome New Retail | Hubei Xingfa vs. Harvest Fund Management | Hubei Xingfa vs. Shijiazhuang Tonhe Electronics |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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