Correlation Between Holitech Technology and Sinocat Environmental
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By analyzing existing cross correlation between Holitech Technology Co and Sinocat Environmental Technology, you can compare the effects of market volatilities on Holitech Technology and Sinocat Environmental 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 Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Sinocat Environmental.
Diversification Opportunities for Holitech Technology and Sinocat Environmental
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Sinocat is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental 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 Sinocat Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocat Environmental has no effect on the direction of Holitech Technology i.e., Holitech Technology and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Holitech Technology and Sinocat Environmental
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.12 times more return on investment than Sinocat Environmental. However, Holitech Technology is 1.12 times more volatile than Sinocat Environmental Technology. It trades about 0.0 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about -0.03 per unit of risk. If you would invest 282.00 in Holitech Technology Co on September 4, 2024 and sell it today you would lose (48.00) from holding Holitech Technology Co or give up 17.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holitech Technology Co vs. Sinocat Environmental Technolo
Performance |
| Timeline |
| Holitech Technology |
| Sinocat Environmental |
Holitech Technology and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Sinocat Environmental
The main advantage of trading using opposite Holitech Technology and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Sinocat Environmental 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 Sinocat Environmental will offset losses from the drop in Sinocat Environmental's long position.| Holitech Technology vs. PetroChina Co Ltd | Holitech Technology vs. China Mobile Limited | Holitech Technology vs. CNOOC Limited | Holitech Technology vs. Ping An Insurance |
| Sinocat Environmental vs. Saurer Intelligent Technology | Sinocat Environmental vs. Dhc Software Co | Sinocat Environmental vs. Sinofibers Technology Co | Sinocat Environmental 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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