Correlation Between Hollysys Automation and NVent Electric
Can any of the company-specific risk be diversified away by investing in both Hollysys Automation and NVent Electric 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 Hollysys Automation and NVent Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hollysys Automation Technologies and nVent Electric PLC, you can compare the effects of market volatilities on Hollysys Automation and NVent Electric 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 Hollysys Automation with a short position of NVent Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollysys Automation and NVent Electric.
Diversification Opportunities for Hollysys Automation and NVent Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hollysys and NVent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hollysys Automation Technologi and nVent Electric PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nVent Electric PLC and Hollysys Automation 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 Hollysys Automation Technologies are associated (or correlated) with NVent Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nVent Electric PLC has no effect on the direction of Hollysys Automation i.e., Hollysys Automation and NVent Electric go up and down completely randomly.
Pair Corralation between Hollysys Automation and NVent Electric
If you would invest 2,642 in Hollysys Automation Technologies on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Hollysys Automation Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Hollysys Automation Technologi vs. nVent Electric PLC
Performance |
| Timeline |
| Hollysys Automation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| nVent Electric PLC |
Hollysys Automation and NVent Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollysys Automation and NVent Electric
The main advantage of trading using opposite Hollysys Automation and NVent Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollysys Automation position performs unexpectedly, NVent Electric 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 NVent Electric will offset losses from the drop in NVent Electric's long position.| Hollysys Automation vs. Huazhu Group | Hollysys Automation vs. VNET Group DRC | Hollysys Automation vs. Noah Holdings |
| NVent Electric vs. Hubbell | NVent Electric vs. Advanced Energy Industries | NVent Electric vs. Vertiv Holdings Co | NVent Electric vs. Energizer Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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