Correlation Between Tjk Machinery and Holitech Technology
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By analyzing existing cross correlation between Tjk Machinery Tianjin and Holitech Technology Co, you can compare the effects of market volatilities on Tjk Machinery 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 Tjk Machinery with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tjk Machinery and Holitech Technology.
Diversification Opportunities for Tjk Machinery and Holitech Technology
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tjk and Holitech is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Tjk Machinery Tianjin and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Tjk Machinery 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 Tjk Machinery Tianjin 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 Tjk Machinery i.e., Tjk Machinery and Holitech Technology go up and down completely randomly.
Pair Corralation between Tjk Machinery and Holitech Technology
Assuming the 90 days trading horizon Tjk Machinery Tianjin is expected to generate 1.4 times more return on investment than Holitech Technology. However, Tjk Machinery is 1.4 times more volatile than Holitech Technology Co. It trades about 0.34 of its potential returns per unit of risk. Holitech Technology Co is currently generating about 0.04 per unit of risk. If you would invest 1,354 in Tjk Machinery Tianjin on November 29, 2024 and sell it today you would earn a total of 253.00 from holding Tjk Machinery Tianjin or generate 18.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tjk Machinery Tianjin vs. Holitech Technology Co
Performance |
| Timeline |
| Tjk Machinery Tianjin |
| Holitech Technology |
Tjk Machinery and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tjk Machinery and Holitech Technology
The main advantage of trading using opposite Tjk Machinery and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tjk Machinery 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.| Tjk Machinery vs. Gifore Agricultural Machinery | Tjk Machinery vs. Sportsoul Co Ltd | Tjk Machinery vs. Fsilon Furnishing and | Tjk Machinery vs. Hubeiyichang Transportation Group |
| Holitech Technology vs. Anhui Deli Household | Holitech Technology vs. Sportsoul Co Ltd | Holitech Technology vs. Gan Yuan Foods | Holitech Technology vs. New Hope Dairy |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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