Correlation Between Holley and Niu Technologies
Can any of the company-specific risk be diversified away by investing in both Holley and Niu Technologies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Holley and Niu Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Holley Inc and Niu Technologies, you can compare the effects of market volatilities on Holley and Niu Technologies 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 Holley with a short position of Niu Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holley and Niu Technologies.
Diversification Opportunities for Holley and Niu Technologies
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Holley and Niu is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Holley Inc and Niu Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niu Technologies and Holley 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 Holley Inc are associated (or correlated) with Niu Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niu Technologies has no effect on the direction of Holley i.e., Holley and Niu Technologies go up and down completely randomly.
Pair Corralation between Holley and Niu Technologies
Given the investment horizon of 90 days Holley Inc is expected to generate 1.0 times more return on investment than Niu Technologies. However, Holley is 1.0 times more volatile than Niu Technologies. It trades about 0.03 of its potential returns per unit of risk. Niu Technologies is currently generating about -0.02 per unit of risk. If you would invest 266.00 in Holley Inc on August 27, 2024 and sell it today you would earn a total of 22.00 from holding Holley Inc or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holley Inc vs. Niu Technologies
Performance |
| Timeline |
| Holley Inc |
| Niu Technologies |
Holley and Niu Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holley and Niu Technologies
The main advantage of trading using opposite Holley and Niu Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holley position performs unexpectedly, Niu Technologies 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 Niu Technologies will offset losses from the drop in Niu Technologies' long position.| Holley vs. Dorman Products | Holley vs. Monro Muffler Brake | Holley vs. Standard Motor Products | Holley vs. Stoneridge |
| Niu Technologies vs. Xpeng Inc | Niu Technologies vs. Nio Class A | Niu Technologies vs. Lucid Group | Niu Technologies vs. BYD Co Ltd |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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