Correlation Between Holitech Technology and Shanghai CEO
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By analyzing existing cross correlation between Holitech Technology Co and Shanghai CEO Environmental, you can compare the effects of market volatilities on Holitech Technology and Shanghai CEO 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 CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Shanghai CEO.
Diversification Opportunities for Holitech Technology and Shanghai CEO
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Shanghai is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ 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 CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of Holitech Technology i.e., Holitech Technology and Shanghai CEO go up and down completely randomly.
Pair Corralation between Holitech Technology and Shanghai CEO
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.88 times more return on investment than Shanghai CEO. However, Holitech Technology is 1.88 times more volatile than Shanghai CEO Environmental. It trades about 0.22 of its potential returns per unit of risk. Shanghai CEO Environmental is currently generating about 0.16 per unit of risk. If you would invest 183.00 in Holitech Technology Co on September 2, 2024 and sell it today you would earn a total of 36.00 from holding Holitech Technology Co or generate 19.67% 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 CEO Environmental
Performance |
| Timeline |
| Holitech Technology |
| Shanghai CEO Environ |
Holitech Technology and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Shanghai CEO
The main advantage of trading using opposite Holitech Technology and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Shanghai CEO 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 CEO will offset losses from the drop in Shanghai CEO'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 |
| Shanghai CEO vs. Cultural Investment Holdings | Shanghai CEO vs. Gome Telecom Equipment | Shanghai CEO vs. Bus Online Co | Shanghai CEO vs. Holitech Technology 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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