Correlation Between Holitech Technology and Gome Telecom
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By analyzing existing cross correlation between Holitech Technology Co and Gome Telecom Equipment, you can compare the effects of market volatilities on Holitech Technology and Gome Telecom 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 Gome Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Gome Telecom.
Diversification Opportunities for Holitech Technology and Gome Telecom
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Holitech and Gome is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Gome Telecom Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gome Telecom Equipment 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 Gome Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gome Telecom Equipment has no effect on the direction of Holitech Technology i.e., Holitech Technology and Gome Telecom go up and down completely randomly.
Pair Corralation between Holitech Technology and Gome Telecom
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.15 times more return on investment than Gome Telecom. However, Holitech Technology is 1.15 times more volatile than Gome Telecom Equipment. It trades about 0.0 of its potential returns per unit of risk. Gome Telecom Equipment is currently generating about -0.12 per unit of risk. If you would invest 292.00 in Holitech Technology Co on November 2, 2024 and sell it today you would lose (90.00) from holding Holitech Technology Co or give up 30.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Holitech Technology Co vs. Gome Telecom Equipment
Performance |
| Timeline |
| Holitech Technology |
| Gome Telecom Equipment |
Holitech Technology and Gome Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Gome Telecom
The main advantage of trading using opposite Holitech Technology and Gome Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Gome Telecom 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 Gome Telecom will offset losses from the drop in Gome Telecom's long position.| Holitech Technology vs. GigaDevice SemiconductorBeiji | Holitech Technology vs. Dr Peng Telecom | Holitech Technology vs. Tongyu Communication | Holitech Technology vs. Tianjin Hi Tech Development |
| Gome Telecom vs. Shenzhen Shenbao Industrial | Gome Telecom vs. Ningbo Fujia Industrial | Gome Telecom vs. Semiconductor Manufacturing Intl | Gome Telecom vs. Guangzhou Haozhi Industrial |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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