Correlation Between Chengtun Mining and Holitech Technology
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By analyzing existing cross correlation between Chengtun Mining Group and Holitech Technology Co, you can compare the effects of market volatilities on Chengtun Mining 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 Chengtun Mining with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Holitech Technology.
Diversification Opportunities for Chengtun Mining and Holitech Technology
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengtun and Holitech is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Chengtun Mining 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 Chengtun Mining Group 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 Chengtun Mining i.e., Chengtun Mining and Holitech Technology go up and down completely randomly.
Pair Corralation between Chengtun Mining and Holitech Technology
Assuming the 90 days trading horizon Chengtun Mining Group is expected to under-perform the Holitech Technology. But the stock apears to be less risky and, when comparing its historical volatility, Chengtun Mining Group is 1.48 times less risky than Holitech Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Holitech Technology Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 275.00 in Holitech Technology Co on August 30, 2024 and sell it today you would lose (43.00) from holding Holitech Technology Co or give up 15.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Chengtun Mining Group vs. Holitech Technology Co
Performance |
| Timeline |
| Chengtun Mining Group |
| Holitech Technology |
Chengtun Mining and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Holitech Technology
The main advantage of trading using opposite Chengtun Mining and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining 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.| Chengtun Mining vs. Shandong Gold Mining | Chengtun Mining vs. Rongsheng Petrochemical Co | Chengtun Mining vs. Inner Mongolia BaoTou | Chengtun Mining vs. Jiangxi Ganfeng Lithium |
| Holitech Technology vs. China State Construction | Holitech Technology vs. Huafa Industrial Co | Holitech Technology vs. China International Capital | Holitech Technology vs. Kweichow Moutai Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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