Correlation Between King-Strong New and Holitech Technology
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By analyzing existing cross correlation between King Strong New Material and Holitech Technology Co, you can compare the effects of market volatilities on King-Strong New 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 King-Strong New with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of King-Strong New and Holitech Technology.
Diversification Opportunities for King-Strong New and Holitech Technology
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between King-Strong and Holitech is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and King-Strong New 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 King Strong New Material 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 King-Strong New i.e., King-Strong New and Holitech Technology go up and down completely randomly.
Pair Corralation between King-Strong New and Holitech Technology
Assuming the 90 days trading horizon King Strong New Material is expected to generate 0.85 times more return on investment than Holitech Technology. However, King Strong New Material is 1.18 times less risky than Holitech Technology. It trades about 0.03 of its potential returns per unit of risk. Holitech Technology Co is currently generating about -0.02 per unit of risk. If you would invest 1,957 in King Strong New Material on August 31, 2024 and sell it today you would earn a total of 423.00 from holding King Strong New Material or generate 21.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
King Strong New Material vs. Holitech Technology Co
Performance |
| Timeline |
| King Strong New |
| Holitech Technology |
King-Strong New and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King-Strong New and Holitech Technology
The main advantage of trading using opposite King-Strong New and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King-Strong New 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.| King-Strong New vs. Cultural Investment Holdings | King-Strong New vs. Gome Telecom Equipment | King-Strong New vs. Bus Online Co | King-Strong New vs. Holitech Technology Co |
| Holitech Technology vs. Kweichow Moutai Co | Holitech Technology vs. NAURA Technology Group | Holitech Technology vs. APT Medical | Holitech Technology vs. Contemporary Amperex Technology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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