Correlation Between Smartgiant Technology and Holitech Technology
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By analyzing existing cross correlation between Smartgiant Technology Co and Holitech Technology Co, you can compare the effects of market volatilities on Smartgiant Technology 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 Smartgiant Technology with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smartgiant Technology and Holitech Technology.
Diversification Opportunities for Smartgiant Technology and Holitech Technology
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Smartgiant and Holitech is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Smartgiant Technology 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 Smartgiant Technology 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 Smartgiant Technology 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 Smartgiant Technology i.e., Smartgiant Technology and Holitech Technology go up and down completely randomly.
Pair Corralation between Smartgiant Technology and Holitech Technology
Assuming the 90 days trading horizon Smartgiant Technology Co is expected to generate 1.16 times more return on investment than Holitech Technology. However, Smartgiant Technology is 1.16 times more volatile than Holitech Technology Co. It trades about -0.15 of its potential returns per unit of risk. Holitech Technology Co is currently generating about -0.43 per unit of risk. If you would invest 4,391 in Smartgiant Technology Co on October 28, 2024 and sell it today you would lose (431.00) from holding Smartgiant Technology Co or give up 9.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smartgiant Technology Co vs. Holitech Technology Co
Performance |
| Timeline |
| Smartgiant Technology |
| Holitech Technology |
Smartgiant Technology and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smartgiant Technology and Holitech Technology
The main advantage of trading using opposite Smartgiant Technology and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smartgiant Technology 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.| Smartgiant Technology vs. V V Food | Smartgiant Technology vs. Jiajia Food Group | Smartgiant Technology vs. Omnijoi Media Corp | Smartgiant Technology vs. Shanghai Xinhua Media |
| Holitech Technology vs. Chengdu Kanghua Biological | Holitech Technology vs. Suzhou Novoprotein Scientific | Holitech Technology vs. Aluminum Corp of | Holitech Technology vs. COL Digital Publishing |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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