Correlation Between Qingdao NovelBeam and Holitech Technology
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By analyzing existing cross correlation between Qingdao NovelBeam Technology and Holitech Technology Co, you can compare the effects of market volatilities on Qingdao NovelBeam 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 Qingdao NovelBeam with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao NovelBeam and Holitech Technology.
Diversification Opportunities for Qingdao NovelBeam and Holitech Technology
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Holitech is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao NovelBeam 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 Qingdao NovelBeam 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 Qingdao NovelBeam 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 Qingdao NovelBeam i.e., Qingdao NovelBeam and Holitech Technology go up and down completely randomly.
Pair Corralation between Qingdao NovelBeam and Holitech Technology
Assuming the 90 days trading horizon Qingdao NovelBeam Technology is expected to under-perform the Holitech Technology. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao NovelBeam Technology is 1.36 times less risky than Holitech Technology. The stock trades about -0.05 of its potential returns per unit of risk. The Holitech Technology Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 278.00 in Holitech Technology Co on August 29, 2024 and sell it today you would lose (46.00) from holding Holitech Technology Co or give up 16.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Qingdao NovelBeam Technology vs. Holitech Technology Co
Performance |
| Timeline |
| Qingdao NovelBeam |
| Holitech Technology |
Qingdao NovelBeam and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao NovelBeam and Holitech Technology
The main advantage of trading using opposite Qingdao NovelBeam and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao NovelBeam 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.| Qingdao NovelBeam vs. Industrial and Commercial | Qingdao NovelBeam vs. China Construction Bank | Qingdao NovelBeam vs. Agricultural Bank of | Qingdao NovelBeam vs. Bank of China |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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