Correlation Between Hubei Geoway and Holitech Technology
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By analyzing existing cross correlation between Hubei Geoway Investment and Holitech Technology Co, you can compare the effects of market volatilities on Hubei Geoway 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 Hubei Geoway with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Holitech Technology.
Diversification Opportunities for Hubei Geoway and Holitech Technology
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and Holitech is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Hubei Geoway 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 Hubei Geoway Investment 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 Hubei Geoway i.e., Hubei Geoway and Holitech Technology go up and down completely randomly.
Pair Corralation between Hubei Geoway and Holitech Technology
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to generate 0.78 times more return on investment than Holitech Technology. However, Hubei Geoway Investment is 1.29 times less risky than Holitech Technology. It trades about -0.01 of its potential returns per unit of risk. Holitech Technology Co is currently generating about -0.01 per unit of risk. If you would invest 204.00 in Hubei Geoway Investment on September 26, 2024 and sell it today you would lose (46.00) from holding Hubei Geoway Investment or give up 22.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Holitech Technology Co
Performance |
| Timeline |
| Hubei Geoway Investment |
| Holitech Technology |
Hubei Geoway and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Holitech Technology
The main advantage of trading using opposite Hubei Geoway and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway 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.| Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Wanhua Chemical Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway vs. Shandong Gold Mining |
| Holitech Technology vs. Industrial and Commercial | Holitech Technology vs. China Construction Bank | Holitech Technology vs. Agricultural Bank of | Holitech Technology vs. Bank of China |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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