Correlation Between Allgens Medical and Holitech Technology
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By analyzing existing cross correlation between Allgens Medical Technology and Holitech Technology Co, you can compare the effects of market volatilities on Allgens Medical 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 Allgens Medical with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allgens Medical and Holitech Technology.
Diversification Opportunities for Allgens Medical and Holitech Technology
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allgens and Holitech is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Allgens Medical Technology and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Allgens Medical 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 Allgens Medical Technology 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 Allgens Medical i.e., Allgens Medical and Holitech Technology go up and down completely randomly.
Pair Corralation between Allgens Medical and Holitech Technology
Assuming the 90 days trading horizon Allgens Medical Technology is expected to generate 0.78 times more return on investment than Holitech Technology. However, Allgens Medical Technology is 1.28 times less risky than Holitech Technology. It trades about 0.14 of its potential returns per unit of risk. Holitech Technology Co is currently generating about -0.13 per unit of risk. If you would invest 1,857 in Allgens Medical Technology on September 13, 2024 and sell it today you would earn a total of 160.00 from holding Allgens Medical Technology or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allgens Medical Technology vs. Holitech Technology Co
Performance |
| Timeline |
| Allgens Medical Tech |
| Holitech Technology |
Allgens Medical and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allgens Medical and Holitech Technology
The main advantage of trading using opposite Allgens Medical and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allgens Medical 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.| Allgens Medical vs. Industrial and Commercial | Allgens Medical vs. Kweichow Moutai Co | Allgens Medical vs. Agricultural Bank of | Allgens Medical vs. China Mobile Limited |
| Holitech Technology vs. Industrial and Commercial | Holitech Technology vs. Agricultural Bank of | Holitech Technology vs. China Construction Bank | Holitech Technology vs. Bank of China |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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