Correlation Between Zhejiang Orient and Holike
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By analyzing existing cross correlation between Zhejiang Orient Gene and Holike, you can compare the effects of market volatilities on Zhejiang Orient and Holike 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 Zhejiang Orient with a short position of Holike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Orient and Holike.
Diversification Opportunities for Zhejiang Orient and Holike
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Holike is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Orient Gene and Holike in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holike and Zhejiang Orient 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 Zhejiang Orient Gene are associated (or correlated) with Holike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holike has no effect on the direction of Zhejiang Orient i.e., Zhejiang Orient and Holike go up and down completely randomly.
Pair Corralation between Zhejiang Orient and Holike
Assuming the 90 days trading horizon Zhejiang Orient Gene is expected to under-perform the Holike. In addition to that, Zhejiang Orient is 1.51 times more volatile than Holike. It trades about -0.05 of its total potential returns per unit of risk. Holike is currently generating about 0.45 per unit of volatility. If you would invest 840.00 in Holike on September 2, 2024 and sell it today you would earn a total of 200.00 from holding Holike or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Orient Gene vs. Holike
Performance |
| Timeline |
| Zhejiang Orient Gene |
| Holike |
Zhejiang Orient and Holike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Orient and Holike
The main advantage of trading using opposite Zhejiang Orient and Holike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Orient position performs unexpectedly, Holike 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 Holike will offset losses from the drop in Holike's long position.| Zhejiang Orient vs. Fujian Oriental Silver | Zhejiang Orient vs. Zhongshan Public Utilities | Zhejiang Orient vs. Vontron Technology Co | Zhejiang Orient vs. Zhangjiagang Freetrade Science |
| Holike vs. Kweichow Moutai Co | Holike vs. NAURA Technology Group | Holike vs. Zhejiang Orient Gene | Holike vs. APT Medical |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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