Correlation Between Konfoong Materials and Holitech Technology
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By analyzing existing cross correlation between Konfoong Materials International and Holitech Technology Co, you can compare the effects of market volatilities on Konfoong Materials 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 Konfoong Materials with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konfoong Materials and Holitech Technology.
Diversification Opportunities for Konfoong Materials and Holitech Technology
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Konfoong and Holitech is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Konfoong Materials Internation and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Konfoong Materials 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 Konfoong Materials International 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 Konfoong Materials i.e., Konfoong Materials and Holitech Technology go up and down completely randomly.
Pair Corralation between Konfoong Materials and Holitech Technology
Assuming the 90 days trading horizon Konfoong Materials International is expected to generate 0.67 times more return on investment than Holitech Technology. However, Konfoong Materials International is 1.5 times less risky than Holitech Technology. It trades about -0.04 of its potential returns per unit of risk. Holitech Technology Co is currently generating about -0.1 per unit of risk. If you would invest 7,102 in Konfoong Materials International on October 18, 2024 and sell it today you would lose (189.00) from holding Konfoong Materials International or give up 2.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konfoong Materials Internation vs. Holitech Technology Co
Performance |
| Timeline |
| Konfoong Materials |
| Holitech Technology |
Konfoong Materials and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konfoong Materials and Holitech Technology
The main advantage of trading using opposite Konfoong Materials and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konfoong Materials 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.| Konfoong Materials vs. China Reform Health | Konfoong Materials vs. Dezhan HealthCare Co | Konfoong Materials vs. Tianjin Capital Environmental | Konfoong Materials vs. PKU HealthCare Corp |
| Holitech Technology vs. Konfoong Materials International | Holitech Technology vs. Harvest Fund Management | Holitech Technology vs. Jinsanjiang Silicon Material | Holitech Technology vs. SSAW Hotels Resorts |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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