Correlation Between China State and Holitech Technology
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By analyzing existing cross correlation between China State Construction and Holitech Technology Co, you can compare the effects of market volatilities on China State 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 China State with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Holitech Technology.
Diversification Opportunities for China State and Holitech Technology
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Holitech is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and China State 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 China State Construction 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 China State i.e., China State and Holitech Technology go up and down completely randomly.
Pair Corralation between China State and Holitech Technology
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Holitech Technology. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 2.14 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 0.27 of returns per unit of risk over similar time horizon. If you would invest 174.00 in Holitech Technology Co on September 1, 2024 and sell it today you would earn a total of 45.00 from holding Holitech Technology Co or generate 25.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Holitech Technology Co
Performance |
| Timeline |
| China State Construction |
| Holitech Technology |
China State and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Holitech Technology
The main advantage of trading using opposite China State and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. Hunan Investment Group | China State vs. Huaibei Mining Holdings | China State vs. Metro Investment Development | China State vs. Postal Savings Bank |
| Holitech Technology vs. Cultural Investment Holdings | Holitech Technology vs. Gome Telecom Equipment | Holitech Technology vs. Bus Online Co | Holitech Technology vs. Zotye Automobile 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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