Correlation Between Holitech Technology and Chahua Modern
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By analyzing existing cross correlation between Holitech Technology Co and Chahua Modern Housewares, you can compare the effects of market volatilities on Holitech Technology and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Chahua Modern.
Diversification Opportunities for Holitech Technology and Chahua Modern
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Chahua is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Holitech Technology i.e., Holitech Technology and Chahua Modern go up and down completely randomly.
Pair Corralation between Holitech Technology and Chahua Modern
Assuming the 90 days trading horizon Holitech Technology is expected to generate 1.46 times less return on investment than Chahua Modern. But when comparing it to its historical volatility, Holitech Technology Co is 1.21 times less risky than Chahua Modern. It trades about 0.14 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,005 in Chahua Modern Housewares on October 26, 2024 and sell it today you would earn a total of 1,069 from holding Chahua Modern Housewares or generate 106.37% 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. Chahua Modern Housewares
Performance |
| Timeline |
| Holitech Technology |
| Chahua Modern Housewares |
Holitech Technology and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Chahua Modern
The main advantage of trading using opposite Holitech Technology and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Holitech Technology vs. Chengdu Kanghua Biological | Holitech Technology vs. Suzhou Novoprotein Scientific | Holitech Technology vs. Aluminum Corp of | Holitech Technology vs. COL Digital Publishing |
| Chahua Modern vs. Bus Online Co | Chahua Modern vs. Holitech Technology Co | Chahua Modern vs. Gome Telecom Equipment | Chahua Modern vs. Cultural Investment Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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