Correlation Between Holitech Technology and Guangxi Wuzhou
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By analyzing existing cross correlation between Holitech Technology Co and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Holitech Technology and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Guangxi Wuzhou.
Diversification Opportunities for Holitech Technology and Guangxi Wuzhou
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Guangxi is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Holitech Technology i.e., Holitech Technology and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Holitech Technology and Guangxi Wuzhou
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 2.75 times more return on investment than Guangxi Wuzhou. However, Holitech Technology is 2.75 times more volatile than Guangxi Wuzhou Communications. It trades about 0.22 of its potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.15 per unit of risk. If you would invest 192.00 in Holitech Technology Co on September 4, 2024 and sell it today you would earn a total of 38.00 from holding Holitech Technology Co or generate 19.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holitech Technology Co vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Holitech Technology |
| Guangxi Wuzhou Commu |
Holitech Technology and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Guangxi Wuzhou
The main advantage of trading using opposite Holitech Technology and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Holitech Technology vs. PetroChina Co Ltd | Holitech Technology vs. China Mobile Limited | Holitech Technology vs. CNOOC Limited | Holitech Technology vs. Ping An Insurance |
| Guangxi Wuzhou vs. China State Construction | Guangxi Wuzhou vs. Poly Real Estate | Guangxi Wuzhou vs. China Vanke Co | Guangxi Wuzhou vs. China Merchants Shekou |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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