Correlation Between Holitech Technology and Shanghai Rongtai
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By analyzing existing cross correlation between Holitech Technology Co and Shanghai Rongtai Health, you can compare the effects of market volatilities on Holitech Technology and Shanghai Rongtai 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 Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Shanghai Rongtai.
Diversification Opportunities for Holitech Technology and Shanghai Rongtai
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Shanghai is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health 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 Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Holitech Technology i.e., Holitech Technology and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Holitech Technology and Shanghai Rongtai
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 2.4 times more return on investment than Shanghai Rongtai. However, Holitech Technology is 2.4 times more volatile than Shanghai Rongtai Health. It trades about 0.22 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about 0.28 per unit of risk. If you would invest 192.00 in Holitech Technology Co on September 4, 2024 and sell it today you would earn a total of 38.00 from holding Holitech Technology Co or generate 19.79% 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. Shanghai Rongtai Health
Performance |
| Timeline |
| Holitech Technology |
| Shanghai Rongtai Health |
Holitech Technology and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Shanghai Rongtai
The main advantage of trading using opposite Holitech Technology and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| Holitech Technology vs. PetroChina Co Ltd | Holitech Technology vs. China Mobile Limited | Holitech Technology vs. CNOOC Limited | Holitech Technology vs. Ping An Insurance |
| Shanghai Rongtai vs. Shenzhen MYS Environmental | Shanghai Rongtai vs. Sinosteel Engineering and | Shanghai Rongtai vs. Qijing Machinery | Shanghai Rongtai vs. Ningbo Construction 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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