Correlation Between NAURA Technology and Holike
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By analyzing existing cross correlation between NAURA Technology Group and Holike, you can compare the effects of market volatilities on NAURA Technology and Holike 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 NAURA Technology with a short position of Holike. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Holike.
Diversification Opportunities for NAURA Technology and Holike
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NAURA and Holike is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and Holike in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holike and NAURA 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 NAURA Technology Group are associated (or correlated) with Holike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holike has no effect on the direction of NAURA Technology i.e., NAURA Technology and Holike go up and down completely randomly.
Pair Corralation between NAURA Technology and Holike
Assuming the 90 days trading horizon NAURA Technology is expected to generate 2.69 times less return on investment than Holike. In addition to that, NAURA Technology is 1.5 times more volatile than Holike. It trades about 0.11 of its total potential returns per unit of risk. Holike is currently generating about 0.45 per unit of volatility. If you would invest 840.00 in Holike on September 2, 2024 and sell it today you would earn a total of 200.00 from holding Holike or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAURA Technology Group vs. Holike
Performance |
| Timeline |
| NAURA Technology |
| Holike |
NAURA Technology and Holike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAURA Technology and Holike
The main advantage of trading using opposite NAURA Technology and Holike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology position performs unexpectedly, Holike 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 Holike will offset losses from the drop in Holike's long position.| NAURA Technology vs. Heren Health Co | NAURA Technology vs. Healthcare Co | NAURA Technology vs. Marssenger Kitchenware Co | NAURA Technology vs. Southchip Semiconductor Technology |
| Holike vs. Kweichow Moutai Co | Holike vs. NAURA Technology Group | Holike vs. Zhejiang Orient Gene | Holike vs. APT Medical |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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