Correlation Between Holitech Technology and Sunwoda Electronic
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By analyzing existing cross correlation between Holitech Technology Co and Sunwoda Electronic, you can compare the effects of market volatilities on Holitech Technology and Sunwoda Electronic 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 Holitech Technology with a short position of Sunwoda Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Sunwoda Electronic.
Diversification Opportunities for Holitech Technology and Sunwoda Electronic
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Holitech and Sunwoda is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Sunwoda Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwoda Electronic and Holitech Technology 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 Holitech Technology Co are associated (or correlated) with Sunwoda Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwoda Electronic has no effect on the direction of Holitech Technology i.e., Holitech Technology and Sunwoda Electronic go up and down completely randomly.
Pair Corralation between Holitech Technology and Sunwoda Electronic
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 0.84 times more return on investment than Sunwoda Electronic. However, Holitech Technology Co is 1.19 times less risky than Sunwoda Electronic. It trades about 0.34 of its potential returns per unit of risk. Sunwoda Electronic is currently generating about 0.04 per unit of risk. If you would invest 136.00 in Holitech Technology Co on September 28, 2024 and sell it today you would earn a total of 128.00 from holding Holitech Technology Co or generate 94.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Holitech Technology Co vs. Sunwoda Electronic
Performance |
Timeline |
Holitech Technology |
Sunwoda Electronic |
Holitech Technology and Sunwoda Electronic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Holitech Technology and Sunwoda Electronic
The main advantage of trading using opposite Holitech Technology and Sunwoda Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Sunwoda Electronic 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 Sunwoda Electronic will offset losses from the drop in Sunwoda Electronic's long position.Holitech Technology vs. Industrial and Commercial | ||
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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