Correlation Between Holike and Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Holike and Industrial and Commercial, you can compare the effects of market volatilities on Holike and Industrial 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 Holike with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holike and Industrial.
Diversification Opportunities for Holike and Industrial
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holike and Industrial is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Holike and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial and Holike 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 Holike are associated (or correlated) with Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Holike i.e., Holike and Industrial go up and down completely randomly.
Pair Corralation between Holike and Industrial
Assuming the 90 days trading horizon Holike is expected to generate 3.04 times more return on investment than Industrial. However, Holike is 3.04 times more volatile than Industrial and Commercial. It trades about 0.2 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.32 per unit of risk. If you would invest 881.00 in Holike on September 12, 2024 and sell it today you would earn a total of 105.00 from holding Holike or generate 11.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Holike vs. Industrial and Commercial
Performance |
| Timeline |
| Holike |
| Industrial and Commercial |
Holike and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holike and Industrial
The main advantage of trading using opposite Holike and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holike position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Holike vs. Guangzhou KingTeller Technology | Holike vs. Anhui Gujing Distillery | Holike vs. Shaanxi Energy Investment | Holike vs. Sinofibers Technology Co |
| Industrial vs. Eastroc Beverage Group | Industrial vs. China Publishing Media | Industrial vs. Inly Media Co | Industrial vs. Beijing Sanyuan Foods |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |