Correlation Between Holitech Technology and Bank of Jiangsu
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By analyzing existing cross correlation between Holitech Technology Co and Bank of Jiangsu, you can compare the effects of market volatilities on Holitech Technology and Bank of Jiangsu 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 Bank of Jiangsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Bank of Jiangsu.
Diversification Opportunities for Holitech Technology and Bank of Jiangsu
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Bank is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Bank of Jiangsu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Jiangsu 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 Bank of Jiangsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Jiangsu has no effect on the direction of Holitech Technology i.e., Holitech Technology and Bank of Jiangsu go up and down completely randomly.
Pair Corralation between Holitech Technology and Bank of Jiangsu
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 2.5 times more return on investment than Bank of Jiangsu. However, Holitech Technology is 2.5 times more volatile than Bank of Jiangsu. It trades about 0.79 of its potential returns per unit of risk. Bank of Jiangsu is currently generating about 0.01 per unit of risk. If you would invest 158.00 in Holitech Technology Co on August 27, 2024 and sell it today you would earn a total of 112.00 from holding Holitech Technology Co or generate 70.89% 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. Bank of Jiangsu
Performance |
| Timeline |
| Holitech Technology |
| Bank of Jiangsu |
Holitech Technology and Bank of Jiangsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Bank of Jiangsu
The main advantage of trading using opposite Holitech Technology and Bank of Jiangsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Bank of Jiangsu 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 Bank of Jiangsu will offset losses from the drop in Bank of Jiangsu's long position.| Holitech Technology vs. Guangdong Qunxing Toys | Holitech Technology vs. Western Metal Materials | Holitech Technology vs. Dongfeng Automobile Co | Holitech Technology vs. Shenzhen Topway Video |
| Bank of Jiangsu vs. North Huajin Chemical | Bank of Jiangsu vs. Jiajia Food Group | Bank of Jiangsu vs. Milkyway Chemical Supply | Bank of Jiangsu vs. Nantong Jiangshan Agrochemical |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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