Correlation Between Chengdu Kanghua and Holitech Technology
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By analyzing existing cross correlation between Chengdu Kanghua Biological and Holitech Technology Co, you can compare the effects of market volatilities on Chengdu Kanghua 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 Chengdu Kanghua with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and Holitech Technology.
Diversification Opportunities for Chengdu Kanghua and Holitech Technology
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chengdu and Holitech is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Chengdu Kanghua 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 Chengdu Kanghua Biological 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 Chengdu Kanghua i.e., Chengdu Kanghua and Holitech Technology go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and Holitech Technology
Assuming the 90 days trading horizon Chengdu Kanghua Biological is expected to generate 0.53 times more return on investment than Holitech Technology. However, Chengdu Kanghua Biological is 1.9 times less risky than Holitech Technology. It trades about -0.11 of its potential returns per unit of risk. Holitech Technology Co is currently generating about -0.17 per unit of risk. If you would invest 5,594 in Chengdu Kanghua Biological on October 26, 2024 and sell it today you would lose (462.00) from holding Chengdu Kanghua Biological or give up 8.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Kanghua Biological vs. Holitech Technology Co
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| Holitech Technology |
Chengdu Kanghua and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and Holitech Technology
The main advantage of trading using opposite Chengdu Kanghua and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua 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.| Chengdu Kanghua vs. ROPEOK Technology Group | Chengdu Kanghua vs. Shantou Wanshun Package | Chengdu Kanghua vs. Holitech Technology Co | Chengdu Kanghua vs. Shanghai Ziyan Foods |
| Holitech Technology vs. Chengdu Kanghua Biological | Holitech Technology vs. Suzhou Novoprotein Scientific | Holitech Technology vs. Aluminum Corp of | Holitech Technology vs. COL Digital Publishing |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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