Correlation Between OBiO Technology and Holitech Technology
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By analyzing existing cross correlation between OBiO Technology Corp and Holitech Technology Co, you can compare the effects of market volatilities on OBiO 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 OBiO Technology with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of OBiO Technology and Holitech Technology.
Diversification Opportunities for OBiO Technology and Holitech Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OBiO and Holitech is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding OBiO Technology Corp and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and OBiO 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 OBiO Technology Corp 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 OBiO Technology i.e., OBiO Technology and Holitech Technology go up and down completely randomly.
Pair Corralation between OBiO Technology and Holitech Technology
Assuming the 90 days trading horizon OBiO Technology is expected to generate 6.23 times less return on investment than Holitech Technology. But when comparing it to its historical volatility, OBiO Technology Corp is 1.34 times less risky than Holitech Technology. It trades about 0.06 of its potential returns per unit of risk. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OBiO Technology Corp vs. Holitech Technology Co
Performance |
| Timeline |
| OBiO Technology Corp |
| Holitech Technology |
OBiO Technology and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OBiO Technology and Holitech Technology
The main advantage of trading using opposite OBiO Technology and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OBiO 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.| OBiO Technology vs. Shandong Polymer Biochemicals | OBiO Technology vs. Focus Media Information | OBiO Technology vs. Yingde Greatchem Chemicals | OBiO Technology vs. Harbin Air Conditioning |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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