Correlation Between Liaoning Chengda and Holitech Technology
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By analyzing existing cross correlation between Liaoning Chengda Biotechnology and Holitech Technology Co, you can compare the effects of market volatilities on Liaoning Chengda 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 Liaoning Chengda with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liaoning Chengda and Holitech Technology.
Diversification Opportunities for Liaoning Chengda and Holitech Technology
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Liaoning and Holitech is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Liaoning Chengda Biotechnology and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Liaoning Chengda 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 Liaoning Chengda Biotechnology 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 Liaoning Chengda i.e., Liaoning Chengda and Holitech Technology go up and down completely randomly.
Pair Corralation between Liaoning Chengda and Holitech Technology
Assuming the 90 days trading horizon Liaoning Chengda Biotechnology is expected to generate 0.36 times more return on investment than Holitech Technology. However, Liaoning Chengda Biotechnology is 2.76 times less risky than Holitech Technology. It trades about -0.32 of its potential returns per unit of risk. Holitech Technology Co is currently generating about -0.24 per unit of risk. If you would invest 2,687 in Liaoning Chengda Biotechnology on October 21, 2024 and sell it today you would lose (212.00) from holding Liaoning Chengda Biotechnology or give up 7.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liaoning Chengda Biotechnology vs. Holitech Technology Co
Performance |
| Timeline |
| Liaoning Chengda Bio |
| Holitech Technology |
Liaoning Chengda and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liaoning Chengda and Holitech Technology
The main advantage of trading using opposite Liaoning Chengda and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liaoning Chengda 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.| Liaoning Chengda vs. Jiangsu Financial Leasing | Liaoning Chengda vs. Shandong Sanyuan Biotechnology | Liaoning Chengda vs. Beijing Shunxin Agriculture | Liaoning Chengda vs. Mengtian Home Group |
| Holitech Technology vs. Xiamen Jihong Package | Holitech Technology vs. Bingo Software Co | Holitech Technology vs. Jiangsu Financial Leasing | Holitech Technology vs. Jiangsu Hoperun Software |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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