Correlation Between Holitech Technology and Linewell Software
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By analyzing existing cross correlation between Holitech Technology Co and Linewell Software Co, you can compare the effects of market volatilities on Holitech Technology and Linewell Software 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 Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Linewell Software.
Diversification Opportunities for Holitech Technology and Linewell Software
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Linewell is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software 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 Linewell Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linewell Software has no effect on the direction of Holitech Technology i.e., Holitech Technology and Linewell Software go up and down completely randomly.
Pair Corralation between Holitech Technology and Linewell Software
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 0.86 times more return on investment than Linewell Software. However, Holitech Technology Co is 1.17 times less risky than Linewell Software. It trades about 0.79 of its potential returns per unit of risk. Linewell Software Co is currently generating about -0.02 per unit of risk. If you would invest 158.00 in Holitech Technology Co on August 27, 2024 and sell it today you would earn a total of 112.00 from holding Holitech Technology Co or generate 70.89% 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. Linewell Software Co
Performance |
| Timeline |
| Holitech Technology |
| Linewell Software |
Holitech Technology and Linewell Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Linewell Software
The main advantage of trading using opposite Holitech Technology and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Linewell Software 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 Linewell Software will offset losses from the drop in Linewell Software's long position.| Holitech Technology vs. Guangdong Qunxing Toys | Holitech Technology vs. Western Metal Materials | Holitech Technology vs. Dongfeng Automobile Co | Holitech Technology vs. Shenzhen Topway Video |
| Linewell Software vs. Kunshan Guoli Electronic | Linewell Software vs. Bomin Electronics Co | Linewell Software vs. Xiangyang Automobile Bearing | Linewell Software vs. Changchun Faway Automobile |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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