Correlation Between Tianjin Hi and Holitech Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianjin Hi Tech Development and Holitech Technology Co, you can compare the effects of market volatilities on Tianjin Hi 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 Tianjin Hi with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Holitech Technology.
Diversification Opportunities for Tianjin Hi and Holitech Technology
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Holitech is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Tianjin Hi 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 Tianjin Hi Tech Development 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 Tianjin Hi i.e., Tianjin Hi and Holitech Technology go up and down completely randomly.
Pair Corralation between Tianjin Hi and Holitech Technology
Assuming the 90 days trading horizon Tianjin Hi is expected to generate 8.6 times less return on investment than Holitech Technology. In addition to that, Tianjin Hi is 1.03 times more volatile than Holitech Technology Co. It trades about 0.02 of its total potential returns per unit of risk. Holitech Technology Co is currently generating about 0.21 per unit of volatility. If you would invest 131.00 in Holitech Technology Co on October 14, 2024 and sell it today you would earn a total of 74.00 from holding Holitech Technology Co or generate 56.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. Holitech Technology Co
Performance |
| Timeline |
| Tianjin Hi Tech |
| Holitech Technology |
Tianjin Hi and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Holitech Technology
The main advantage of trading using opposite Tianjin Hi and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi 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.| Tianjin Hi vs. Biwin Storage Technology | Tianjin Hi vs. PetroChina Co Ltd | Tianjin Hi vs. Industrial and Commercial | Tianjin Hi vs. China Construction Bank |
| Holitech Technology vs. Northern United Publishing | Holitech Technology vs. Tianjin Hi Tech Development | Holitech Technology vs. Wuhan Yangtze Communication | Holitech Technology vs. Qtone Education Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |