Correlation Between Holitech Technology and Chongqing Rural
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By analyzing existing cross correlation between Holitech Technology Co and Chongqing Rural Commercial, you can compare the effects of market volatilities on Holitech Technology and Chongqing Rural 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 Chongqing Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Chongqing Rural.
Diversification Opportunities for Holitech Technology and Chongqing Rural
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Holitech and Chongqing is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Chongqing Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Rural Comm 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 Chongqing Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Rural Comm has no effect on the direction of Holitech Technology i.e., Holitech Technology and Chongqing Rural go up and down completely randomly.
Pair Corralation between Holitech Technology and Chongqing Rural
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.56 times more return on investment than Chongqing Rural. However, Holitech Technology is 1.56 times more volatile than Chongqing Rural Commercial. It trades about -0.08 of its potential returns per unit of risk. Chongqing Rural Commercial is currently generating about -0.19 per unit of risk. If you would invest 215.00 in Holitech Technology Co on December 10, 2024 and sell it today you would lose (8.00) from holding Holitech Technology Co or give up 3.72% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Holitech Technology Co vs. Chongqing Rural Commercial
Performance |
Timeline |
Holitech Technology |
Chongqing Rural Comm |
Holitech Technology and Chongqing Rural Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Holitech Technology and Chongqing Rural
The main advantage of trading using opposite Holitech Technology and Chongqing Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Chongqing Rural 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 Chongqing Rural will offset losses from the drop in Chongqing Rural's long position.Holitech Technology vs. Lutian Machinery Co | Holitech Technology vs. Hongrun Construction Group | Holitech Technology vs. Shantui Construction Machinery | Holitech Technology vs. Air China Ltd |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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