Correlation Between Sinomach Automobile and Holitech Technology
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By analyzing existing cross correlation between Sinomach Automobile Co and Holitech Technology Co, you can compare the effects of market volatilities on Sinomach Automobile 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 Sinomach Automobile with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Holitech Technology.
Diversification Opportunities for Sinomach Automobile and Holitech Technology
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinomach and Holitech is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Sinomach Automobile 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 Sinomach Automobile Co 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 Sinomach Automobile i.e., Sinomach Automobile and Holitech Technology go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Holitech Technology
Assuming the 90 days trading horizon Sinomach Automobile is expected to generate 7.23 times less return on investment than Holitech Technology. But when comparing it to its historical volatility, Sinomach Automobile Co is 1.25 times less risky than Holitech Technology. It trades about 0.03 of its potential returns per unit of risk. Holitech Technology Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 120.00 in Holitech Technology Co on November 3, 2024 and sell it today you would earn a total of 82.00 from holding Holitech Technology Co or generate 68.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Holitech Technology Co
Performance |
| Timeline |
| Sinomach Automobile |
| Holitech Technology |
Sinomach Automobile and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Holitech Technology
The main advantage of trading using opposite Sinomach Automobile and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile 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.| Sinomach Automobile vs. China Asset Management | Sinomach Automobile vs. Jiangsu GDK Biotechnology | Sinomach Automobile vs. Fujian Wanchen Biotechnology | Sinomach Automobile vs. Easyhome New Retail |
| Holitech Technology vs. GigaDevice SemiconductorBeiji | Holitech Technology vs. Dr Peng Telecom | Holitech Technology vs. Tongyu Communication | Holitech Technology vs. Tianjin Hi Tech Development |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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