Correlation Between Hollysys Automation and Polar Power
Can any of the company-specific risk be diversified away by investing in both Hollysys Automation and Polar Power 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 Polar Power 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 Polar Power, you can compare the effects of market volatilities on Hollysys Automation and Polar Power 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 Polar Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollysys Automation and Polar Power.
Diversification Opportunities for Hollysys Automation and Polar Power
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hollysys and Polar is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hollysys Automation Technologi and Polar Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polar Power 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 Polar Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polar Power has no effect on the direction of Hollysys Automation i.e., Hollysys Automation and Polar Power go up and down completely randomly.
Pair Corralation between Hollysys Automation and Polar Power
If you would invest 304.00 in Polar Power on August 27, 2024 and sell it today you would earn a total of 34.00 from holding Polar Power or generate 11.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Hollysys Automation Technologi vs. Polar Power
Performance |
| Timeline |
| Hollysys Automation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Polar Power |
Hollysys Automation and Polar Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollysys Automation and Polar Power
The main advantage of trading using opposite Hollysys Automation and Polar Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollysys Automation position performs unexpectedly, Polar Power 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 Polar Power will offset losses from the drop in Polar Power's long position.| Hollysys Automation vs. Huazhu Group | Hollysys Automation vs. VNET Group DRC | Hollysys Automation vs. Noah Holdings |
| Polar Power vs. Plug Power | Polar Power vs. Microvast Holdings | Polar Power vs. Solid Power | Polar Power vs. CBAK Energy Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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