Correlation Between Holitech Technology and Air China
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By analyzing existing cross correlation between Holitech Technology Co and Air China Ltd, you can compare the effects of market volatilities on Holitech Technology and Air China 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 Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Air China.
Diversification Opportunities for Holitech Technology and Air China
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Air is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China 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 Air China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air China has no effect on the direction of Holitech Technology i.e., Holitech Technology and Air China go up and down completely randomly.
Pair Corralation between Holitech Technology and Air China
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.56 times more return on investment than Air China. However, Holitech Technology is 1.56 times more volatile than Air China Ltd. It trades about 0.27 of its potential returns per unit of risk. Air China Ltd is currently generating about 0.16 per unit of risk. If you would invest 130.00 in Holitech Technology Co on September 2, 2024 and sell it today you would earn a total of 89.00 from holding Holitech Technology Co or generate 68.46% 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. Air China Ltd
Performance |
| Timeline |
| Holitech Technology |
| Air China |
Holitech Technology and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Air China
The main advantage of trading using opposite Holitech Technology and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Air China 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 Air China will offset losses from the drop in Air China's long position.| Holitech Technology vs. Cultural Investment Holdings | Holitech Technology vs. Gome Telecom Equipment | Holitech Technology vs. Bus Online Co | Holitech Technology vs. Zotye Automobile Co |
| Air China vs. China Life Insurance | Air China vs. Cinda Securities Co | Air China vs. Piotech Inc A | Air China vs. Dongxing Sec Co |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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