Correlation Between China Railway and Holitech Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Railway Construction and Holitech Technology Co, you can compare the effects of market volatilities on China Railway 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 China Railway with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Holitech Technology.
Diversification Opportunities for China Railway and Holitech Technology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Holitech is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and China Railway 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 China Railway Construction 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 China Railway i.e., China Railway and Holitech Technology go up and down completely randomly.
Pair Corralation between China Railway and Holitech Technology
Assuming the 90 days trading horizon China Railway is expected to generate 5.28 times less return on investment than Holitech Technology. But when comparing it to its historical volatility, China Railway Construction is 2.07 times less risky than Holitech Technology. It trades about 0.17 of its potential returns per unit of risk. Holitech Technology Co is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 158.00 in Holitech Technology Co on August 29, 2024 and sell it today you would earn a total of 74.00 from holding Holitech Technology Co or generate 46.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Construction vs. Holitech Technology Co
Performance |
| Timeline |
| China Railway Constr |
| Holitech Technology |
China Railway and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Holitech Technology
The main advantage of trading using opposite China Railway and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway 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.| China Railway vs. PetroChina Co Ltd | China Railway vs. China State Construction | China Railway vs. China Mobile Limited | China Railway vs. Industrial and Commercial |
| Holitech Technology vs. China State Construction | Holitech Technology vs. Huafa Industrial Co | Holitech Technology vs. China International Capital | Holitech Technology vs. Kweichow Moutai 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |