Correlation Between Holitech Technology and Shanghai Xinhua
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By analyzing existing cross correlation between Holitech Technology Co and Shanghai Xinhua Media, you can compare the effects of market volatilities on Holitech Technology and Shanghai Xinhua 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 Shanghai Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Shanghai Xinhua.
Diversification Opportunities for Holitech Technology and Shanghai Xinhua
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Holitech and Shanghai is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Shanghai Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Xinhua Media 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 Shanghai Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Xinhua Media has no effect on the direction of Holitech Technology i.e., Holitech Technology and Shanghai Xinhua go up and down completely randomly.
Pair Corralation between Holitech Technology and Shanghai Xinhua
Assuming the 90 days trading horizon Holitech Technology Co is expected to under-perform the Shanghai Xinhua. In addition to that, Holitech Technology is 1.06 times more volatile than Shanghai Xinhua Media. It trades about -0.01 of its total potential returns per unit of risk. Shanghai Xinhua Media is currently generating about 0.03 per unit of volatility. If you would invest 509.00 in Shanghai Xinhua Media on November 5, 2024 and sell it today you would earn a total of 82.00 from holding Shanghai Xinhua Media or generate 16.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holitech Technology Co vs. Shanghai Xinhua Media
Performance |
| Timeline |
| Holitech Technology |
| Shanghai Xinhua Media |
Holitech Technology and Shanghai Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Shanghai Xinhua
The main advantage of trading using opposite Holitech Technology and Shanghai Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Shanghai Xinhua 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 Shanghai Xinhua will offset losses from the drop in Shanghai Xinhua's long position.| Holitech Technology vs. Luyin Investment Group | Holitech Technology vs. Cultural Investment Holdings | Holitech Technology vs. Chengdu Xingrong Investment | Holitech Technology vs. Postal Savings Bank |
| Shanghai Xinhua vs. Olympic Circuit Technology | Shanghai Xinhua vs. Chengtun Mining Group | Shanghai Xinhua vs. Eyebright Medical Technology | Shanghai Xinhua vs. Hengli Industrial Development |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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