Correlation Between Holitech Technology and Dr Peng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Holitech Technology Co and Dr Peng Telecom, you can compare the effects of market volatilities on Holitech Technology and Dr Peng 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 Dr Peng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Dr Peng.
Diversification Opportunities for Holitech Technology and Dr Peng
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and 600804 is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Dr Peng Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dr Peng Telecom 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 Dr Peng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dr Peng Telecom has no effect on the direction of Holitech Technology i.e., Holitech Technology and Dr Peng go up and down completely randomly.
Pair Corralation between Holitech Technology and Dr Peng
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.03 times more return on investment than Dr Peng. However, Holitech Technology is 1.03 times more volatile than Dr Peng Telecom. It trades about 0.05 of its potential returns per unit of risk. Dr Peng Telecom is currently generating about -0.04 per unit of risk. If you would invest 150.00 in Holitech Technology Co on October 29, 2024 and sell it today you would earn a total of 52.00 from holding Holitech Technology Co or generate 34.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Holitech Technology Co vs. Dr Peng Telecom
Performance |
| Timeline |
| Holitech Technology |
| Dr Peng Telecom |
Holitech Technology and Dr Peng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Dr Peng
The main advantage of trading using opposite Holitech Technology and Dr Peng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Dr Peng 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 Dr Peng will offset losses from the drop in Dr Peng's long position.| Holitech Technology vs. Xiangyang Automobile Bearing | Holitech Technology vs. Wintao Communications Co | Holitech Technology vs. Nexchip Semiconductor Corp | Holitech Technology vs. Runjian Communication Co |
| Dr Peng vs. Anhui Transport Consulting | Dr Peng vs. New Hope Dairy | Dr Peng vs. Shuhua Sports Co | Dr Peng vs. Hubeiyichang Transportation Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |