Correlation Between Holitech Technology and CITIC Metal
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By analyzing existing cross correlation between Holitech Technology Co and CITIC Metal Co, you can compare the effects of market volatilities on Holitech Technology and CITIC Metal 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 CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and CITIC Metal.
Diversification Opportunities for Holitech Technology and CITIC Metal
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and CITIC is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal 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 CITIC Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Metal has no effect on the direction of Holitech Technology i.e., Holitech Technology and CITIC Metal go up and down completely randomly.
Pair Corralation between Holitech Technology and CITIC Metal
Assuming the 90 days trading horizon Holitech Technology is expected to generate 1.29 times less return on investment than CITIC Metal. In addition to that, Holitech Technology is 1.68 times more volatile than CITIC Metal Co. It trades about 0.01 of its total potential returns per unit of risk. CITIC Metal Co is currently generating about 0.02 per unit of volatility. If you would invest 734.00 in CITIC Metal Co on August 27, 2024 and sell it today you would earn a total of 46.00 from holding CITIC Metal Co or generate 6.27% 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. CITIC Metal Co
Performance |
| Timeline |
| Holitech Technology |
| CITIC Metal |
Holitech Technology and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and CITIC Metal
The main advantage of trading using opposite Holitech Technology and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, CITIC Metal 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 CITIC Metal will offset losses from the drop in CITIC Metal's long position.| Holitech Technology vs. Beijing Mainstreets Investment | Holitech Technology vs. Shanghai Yanpu Metal | Holitech Technology vs. Sunny Loan Top | Holitech Technology vs. Chengtun Mining Group |
| CITIC Metal vs. Zijin Mining Group | CITIC Metal vs. Wanhua Chemical Group | CITIC Metal vs. Baoshan Iron Steel | CITIC Metal vs. Shandong Gold Mining |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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