Correlation Between China Fund and Holitech Technology
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By analyzing existing cross correlation between China Fund Management and Holitech Technology Co, you can compare the effects of market volatilities on China Fund 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 China Fund with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Fund and Holitech Technology.
Diversification Opportunities for China Fund and Holitech Technology
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Holitech is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding China Fund Management and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and China Fund 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 China Fund Management 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 China Fund i.e., China Fund and Holitech Technology go up and down completely randomly.
Pair Corralation between China Fund and Holitech Technology
Assuming the 90 days trading horizon China Fund is expected to generate 63.52 times less return on investment than Holitech Technology. But when comparing it to its historical volatility, China Fund Management is 8.49 times less risky than Holitech Technology. It trades about 0.02 of its potential returns per unit of risk. Holitech Technology Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 133.00 in Holitech Technology Co on September 3, 2024 and sell it today you would earn a total of 86.00 from holding Holitech Technology Co or generate 64.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Fund Management vs. Holitech Technology Co
Performance |
| Timeline |
| China Fund Management |
| Holitech Technology |
China Fund and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Fund and Holitech Technology
The main advantage of trading using opposite China Fund and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Fund 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.| China Fund vs. Holitech Technology Co | China Fund vs. Kuangda Technology Group | China Fund vs. Bangyan Technology Co | China Fund vs. Lonkey Industrial Co |
| Holitech Technology vs. Agricultural Bank of | Holitech Technology vs. China Construction Bank | Holitech Technology vs. Postal Savings Bank | Holitech Technology vs. Bank of Communications |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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