Correlation Between Holitech Technology and Bangyan Technology
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By analyzing existing cross correlation between Holitech Technology Co and Bangyan Technology Co, you can compare the effects of market volatilities on Holitech Technology and Bangyan Technology 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 Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Bangyan Technology.
Diversification Opportunities for Holitech Technology and Bangyan Technology
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Bangyan is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology 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 Bangyan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangyan Technology has no effect on the direction of Holitech Technology i.e., Holitech Technology and Bangyan Technology go up and down completely randomly.
Pair Corralation between Holitech Technology and Bangyan Technology
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.28 times more return on investment than Bangyan Technology. However, Holitech Technology is 1.28 times more volatile than Bangyan Technology Co. It trades about 0.27 of its potential returns per unit of risk. Bangyan Technology Co is currently generating about 0.09 per unit of risk. If you would invest 174.00 in Holitech Technology Co on September 1, 2024 and sell it today you would earn a total of 45.00 from holding Holitech Technology Co or generate 25.86% 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. Bangyan Technology Co
Performance |
| Timeline |
| Holitech Technology |
| Bangyan Technology |
Holitech Technology and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Bangyan Technology
The main advantage of trading using opposite Holitech Technology and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Bangyan Technology 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 Bangyan Technology will offset losses from the drop in Bangyan Technology'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 |
| Bangyan Technology vs. Industrial and Commercial | Bangyan Technology vs. Kweichow Moutai Co | Bangyan Technology vs. Agricultural Bank of | Bangyan Technology vs. China Mobile Limited |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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