Correlation Between Shenzhen Bioeasy and Holitech Technology
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and Holitech Technology Co, you can compare the effects of market volatilities on Shenzhen Bioeasy 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 Shenzhen Bioeasy with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and Holitech Technology.
Diversification Opportunities for Shenzhen Bioeasy and Holitech Technology
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Holitech is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Shenzhen Bioeasy 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 Shenzhen Bioeasy Biotechnology 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 Shenzhen Bioeasy i.e., Shenzhen Bioeasy and Holitech Technology go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and Holitech Technology
Assuming the 90 days trading horizon Shenzhen Bioeasy is expected to generate 2.28 times less return on investment than Holitech Technology. In addition to that, Shenzhen Bioeasy is 1.44 times more volatile than Holitech Technology Co. It trades about 0.14 of its total potential returns per unit of risk. Holitech Technology Co is currently generating about 0.46 per unit of volatility. If you would invest 136.00 in Holitech Technology Co on August 29, 2024 and sell it today you would earn a total of 108.00 from holding Holitech Technology Co or generate 79.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. Holitech Technology Co
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| Holitech Technology |
Shenzhen Bioeasy and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and Holitech Technology
The main advantage of trading using opposite Shenzhen Bioeasy and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy 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.| Shenzhen Bioeasy vs. Industrial and Commercial | Shenzhen Bioeasy vs. China Construction Bank | Shenzhen Bioeasy vs. Agricultural Bank of | Shenzhen Bioeasy vs. Bank of China |
| Holitech Technology vs. China State Construction | Holitech Technology vs. Huafa Industrial Co | Holitech Technology vs. China International Capital | Holitech Technology vs. Kweichow Moutai Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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