Correlation Between Shandong Polymer and Holitech Technology
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and Holitech Technology Co, you can compare the effects of market volatilities on Shandong Polymer 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 Shandong Polymer with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Holitech Technology.
Diversification Opportunities for Shandong Polymer and Holitech Technology
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Holitech is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Shandong Polymer 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 Shandong Polymer Biochemicals 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 Shandong Polymer i.e., Shandong Polymer and Holitech Technology go up and down completely randomly.
Pair Corralation between Shandong Polymer and Holitech Technology
Assuming the 90 days trading horizon Shandong Polymer is expected to generate 20.7 times less return on investment than Holitech Technology. But when comparing it to its historical volatility, Shandong Polymer Biochemicals is 1.35 times less risky than Holitech Technology. It trades about 0.0 of its potential returns per unit of risk. Holitech Technology Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 275.00 in Holitech Technology Co on September 3, 2024 and sell it today you would lose (56.00) from holding Holitech Technology Co or give up 20.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. Holitech Technology Co
Performance |
| Timeline |
| Shandong Polymer Bio |
| Holitech Technology |
Shandong Polymer and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Holitech Technology
The main advantage of trading using opposite Shandong Polymer and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer 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.| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Rongsheng Petrochemical Co | Shandong Polymer vs. Hoshine Silicon Ind |
| Holitech Technology vs. Agricultural Bank of | Holitech Technology vs. China Construction Bank | Holitech Technology vs. Postal Savings Bank | Holitech Technology vs. Bank of Communications |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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