Correlation Between Holitech Technology and Shanghai Jin
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By analyzing existing cross correlation between Holitech Technology Co and Shanghai Jin Jiang, you can compare the effects of market volatilities on Holitech Technology and Shanghai Jin 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 Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Shanghai Jin.
Diversification Opportunities for Holitech Technology and Shanghai Jin
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Shanghai is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of Holitech Technology i.e., Holitech Technology and Shanghai Jin go up and down completely randomly.
Pair Corralation between Holitech Technology and Shanghai Jin
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.1 times more return on investment than Shanghai Jin. However, Holitech Technology is 1.1 times more volatile than Shanghai Jin Jiang. It trades about 0.4 of its potential returns per unit of risk. Shanghai Jin Jiang is currently generating about 0.24 per unit of risk. If you would invest 136.00 in Holitech Technology Co on August 30, 2024 and sell it today you would earn a total of 96.00 from holding Holitech Technology Co or generate 70.59% 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 Jin Jiang
Performance |
| Timeline |
| Holitech Technology |
| Shanghai Jin Jiang |
Holitech Technology and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holitech Technology and Shanghai Jin
The main advantage of trading using opposite Holitech Technology and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Shanghai Jin 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 Jin will offset losses from the drop in Shanghai Jin's long position.| Holitech Technology vs. Sportsoul Co Ltd | Holitech Technology vs. Tongyu Communication | Holitech Technology vs. Everdisplay Optronics Shanghai | Holitech Technology vs. Shuhua Sports Co |
| Shanghai Jin vs. State Grid InformationCommunication | Shanghai Jin vs. Invengo Information Technology | Shanghai Jin vs. China Publishing Media | Shanghai Jin vs. Fujian Longzhou Transportation |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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