Correlation Between Changchun and Holitech Technology
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By analyzing existing cross correlation between Changchun UP Optotech and Holitech Technology Co, you can compare the effects of market volatilities on Changchun and Holitech 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 Changchun with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Holitech Technology.
Diversification Opportunities for Changchun and Holitech Technology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and Holitech is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Changchun 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 Changchun UP Optotech are associated (or correlated) with Holitech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holitech Technology has no effect on the direction of Changchun i.e., Changchun and Holitech Technology go up and down completely randomly.
Pair Corralation between Changchun and Holitech Technology
Assuming the 90 days trading horizon Changchun is expected to generate 3.6 times less return on investment than Holitech Technology. In addition to that, Changchun is 1.58 times more volatile than Holitech Technology Co. It trades about 0.16 of its total potential returns per unit of risk. Holitech Technology Co is currently generating about 0.91 per unit of volatility. If you would invest 143.00 in Holitech Technology Co on August 25, 2024 and sell it today you would earn a total of 127.00 from holding Holitech Technology Co or generate 88.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Holitech Technology Co
Performance |
| Timeline |
| Changchun UP Optotech |
| Holitech Technology |
Changchun and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Holitech Technology
The main advantage of trading using opposite Changchun and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun position performs unexpectedly, Holitech 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 Holitech Technology will offset losses from the drop in Holitech Technology's long position.| Changchun vs. Huatian Hotel Group | Changchun vs. BTG Hotels Group | Changchun vs. Nexchip Semiconductor Corp | Changchun vs. Jinling Hotel Corp |
| Holitech Technology vs. Jilin Chemical Fibre | Holitech Technology vs. Marssenger Kitchenware Co | Holitech Technology vs. Hubei Dinglong Chemical | Holitech Technology 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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