Correlation Between Tongding Interconnection and Holitech Technology
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By analyzing existing cross correlation between Tongding Interconnection Information and Holitech Technology Co, you can compare the effects of market volatilities on Tongding Interconnection 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 Tongding Interconnection with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongding Interconnection and Holitech Technology.
Diversification Opportunities for Tongding Interconnection and Holitech Technology
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongding and Holitech is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Tongding Interconnection Infor and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Tongding Interconnection 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 Tongding Interconnection Information 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 Tongding Interconnection i.e., Tongding Interconnection and Holitech Technology go up and down completely randomly.
Pair Corralation between Tongding Interconnection and Holitech Technology
Assuming the 90 days trading horizon Tongding Interconnection Information is expected to generate 0.82 times more return on investment than Holitech Technology. However, Tongding Interconnection Information is 1.22 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 0.0 per unit of risk. If you would invest 482.00 in Tongding Interconnection Information on October 15, 2024 and sell it today you would lose (67.00) from holding Tongding Interconnection Information or give up 13.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Tongding Interconnection Infor vs. Holitech Technology Co
Performance |
| Timeline |
| Tongding Interconnection |
| Holitech Technology |
Tongding Interconnection and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongding Interconnection and Holitech Technology
The main advantage of trading using opposite Tongding Interconnection and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongding Interconnection 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.| Tongding Interconnection vs. JiShi Media Co | Tongding Interconnection vs. Guangzhou Jinyi Media | Tongding Interconnection vs. Omnijoi Media Corp | Tongding Interconnection vs. Ciwen Media Co |
| Holitech Technology vs. Tongyu Communication | Holitech Technology vs. Xiangyang Automobile Bearing | Holitech Technology vs. Anhui Gujing Distillery | Holitech Technology vs. Wuhan Yangtze Communication |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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