Correlation Between Anhui Jianghuai and Holitech Technology
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Holitech Technology Co, you can compare the effects of market volatilities on Anhui Jianghuai 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 Anhui Jianghuai with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Holitech Technology.
Diversification Opportunities for Anhui Jianghuai and Holitech Technology
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Holitech is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Anhui Jianghuai 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 Anhui Jianghuai Automobile 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 Anhui Jianghuai i.e., Anhui Jianghuai and Holitech Technology go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Holitech Technology
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.13 times more return on investment than Holitech Technology. However, Anhui Jianghuai is 1.13 times more volatile than Holitech Technology Co. It trades about 0.09 of its potential returns per unit of risk. Holitech Technology Co is currently generating about -0.38 per unit of risk. If you would invest 3,894 in Anhui Jianghuai Automobile on October 30, 2024 and sell it today you would earn a total of 195.00 from holding Anhui Jianghuai Automobile or generate 5.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Holitech Technology Co
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Holitech Technology |
Anhui Jianghuai and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Holitech Technology
The main advantage of trading using opposite Anhui Jianghuai and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai 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.| Anhui Jianghuai vs. China Longyuan Power | Anhui Jianghuai vs. PetroChina Co Ltd | Anhui Jianghuai vs. Guangxi Guiguan Electric | Anhui Jianghuai vs. Yantai North Andre |
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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