Correlation Between Holitech Technology and OBiO Technology
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By analyzing existing cross correlation between Holitech Technology Co and OBiO Technology Corp, you can compare the effects of market volatilities on Holitech Technology and OBiO 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 OBiO Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and OBiO Technology.
Diversification Opportunities for Holitech Technology and OBiO Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and OBiO is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and OBiO Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OBiO Technology 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 OBiO Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OBiO Technology Corp has no effect on the direction of Holitech Technology i.e., Holitech Technology and OBiO Technology go up and down completely randomly.
Pair Corralation between Holitech Technology and OBiO Technology
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.34 times more return on investment than OBiO Technology. However, Holitech Technology is 1.34 times more volatile than OBiO Technology Corp. It trades about 0.27 of its potential returns per unit of risk. OBiO Technology Corp is currently generating about 0.06 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. OBiO Technology Corp
Performance |
| Timeline |
| Holitech Technology |
| OBiO Technology Corp |
Holitech Technology and OBiO Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and OBiO Technology
The main advantage of trading using opposite Holitech Technology and OBiO Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, OBiO 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 OBiO Technology will offset losses from the drop in OBiO 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 |
| OBiO Technology vs. Shandong Polymer Biochemicals | OBiO Technology vs. Focus Media Information | OBiO Technology vs. Yingde Greatchem Chemicals | OBiO Technology vs. Harbin Air Conditioning |
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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