Correlation Between Changjiang Jinggong and Holitech Technology
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By analyzing existing cross correlation between Changjiang Jinggong Steel and Holitech Technology Co, you can compare the effects of market volatilities on Changjiang Jinggong 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 Changjiang Jinggong with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and Holitech Technology.
Diversification Opportunities for Changjiang Jinggong and Holitech Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changjiang and Holitech is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Changjiang Jinggong 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 Changjiang Jinggong Steel 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 Changjiang Jinggong i.e., Changjiang Jinggong and Holitech Technology go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and Holitech Technology
Assuming the 90 days trading horizon Changjiang Jinggong is expected to generate 12.57 times less return on investment than Holitech Technology. But when comparing it to its historical volatility, Changjiang Jinggong Steel is 1.74 times less risky than Holitech Technology. It trades about 0.12 of its potential returns per unit of risk. Holitech Technology Co is currently generating about 0.84 of returns per unit of risk over similar time horizon. If you would invest 150.00 in Holitech Technology Co on August 26, 2024 and sell it today you would earn a total of 120.00 from holding Holitech Technology Co or generate 80.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Jinggong Steel vs. Holitech Technology Co
Performance |
| Timeline |
| Changjiang Jinggong Steel |
| Holitech Technology |
Changjiang Jinggong and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Jinggong and Holitech Technology
The main advantage of trading using opposite Changjiang Jinggong and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong 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.| Changjiang Jinggong vs. Cultural Investment Holdings | Changjiang Jinggong vs. China Express Airlines | Changjiang Jinggong vs. Blue Sail Medical | Changjiang Jinggong vs. Xiandai Investment Co |
| Holitech Technology vs. Beijing Mainstreets Investment | Holitech Technology vs. Shanghai Yanpu Metal | Holitech Technology vs. Sunny Loan Top | Holitech Technology vs. Chengtun Mining 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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