Correlation Between Hainan Mining and Holitech Technology
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By analyzing existing cross correlation between Hainan Mining Co and Holitech Technology Co, you can compare the effects of market volatilities on Hainan 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 Hainan Mining with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Holitech Technology.
Diversification Opportunities for Hainan Mining and Holitech Technology
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Holitech is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Hainan 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 Hainan Mining Co 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 Hainan Mining i.e., Hainan Mining and Holitech Technology go up and down completely randomly.
Pair Corralation between Hainan Mining and Holitech Technology
Assuming the 90 days trading horizon Hainan Mining is expected to generate 1.04 times less return on investment than Holitech Technology. But when comparing it to its historical volatility, Hainan Mining Co is 1.59 times less risky than Holitech Technology. It trades about 0.02 of its potential returns per unit of risk. Holitech Technology Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 299.00 in Holitech Technology Co on August 27, 2024 and sell it today you would lose (29.00) from holding Holitech Technology Co or give up 9.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Holitech Technology Co
Performance |
| Timeline |
| Hainan Mining |
| Holitech Technology |
Hainan Mining and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Holitech Technology
The main advantage of trading using opposite Hainan Mining and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan 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.| Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Shandong Gold Mining | Hainan Mining vs. Rongsheng Petrochemical Co | Hainan Mining vs. Inner Mongolia BaoTou |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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