Correlation Between Holitech Technology and China Telecom
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By analyzing existing cross correlation between Holitech Technology Co and China Telecom Corp, you can compare the effects of market volatilities on Holitech Technology and China 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 China Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and China Telecom.
Diversification Opportunities for Holitech Technology and China Telecom
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Holitech and China is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and China Telecom Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Telecom Corp 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 China Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Telecom Corp has no effect on the direction of Holitech Technology i.e., Holitech Technology and China Telecom go up and down completely randomly.
Pair Corralation between Holitech Technology and China Telecom
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 2.21 times more return on investment than China Telecom. However, Holitech Technology is 2.21 times more volatile than China Telecom Corp. It trades about 0.17 of its potential returns per unit of risk. China Telecom Corp is currently generating about 0.04 per unit of risk. If you would invest 192.00 in Holitech Technology Co on September 3, 2024 and sell it today you would earn a total of 27.00 from holding Holitech Technology Co or generate 14.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holitech Technology Co vs. China Telecom Corp
Performance |
| Timeline |
| Holitech Technology |
| China Telecom Corp |
Holitech Technology and China Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and China Telecom
The main advantage of trading using opposite Holitech Technology and China Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, China 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 China Telecom will offset losses from the drop in China Telecom's long position.| Holitech Technology vs. Agricultural Bank of | Holitech Technology vs. China Construction Bank | Holitech Technology vs. Postal Savings Bank | Holitech Technology vs. Bank of Communications |
| China Telecom vs. Holitech Technology Co | China Telecom vs. Jiujiang Shanshui Technology | China Telecom vs. Ningbo MedicalSystem Biotechnology | China Telecom vs. Iat Automobile Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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