Correlation Between Shanghai Suochen and Holitech Technology

Can any of the company-specific risk be diversified away by investing in both Shanghai Suochen and Holitech Technology 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 Shanghai Suochen and Holitech Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shanghai Suochen Information and Holitech Technology Co, you can compare the effects of market volatilities on Shanghai Suochen and Holitech Technology 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 Shanghai Suochen with a short position of Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Suochen and Holitech Technology.

Diversification Opportunities for Shanghai Suochen and Holitech Technology

0.0

Correlation Coefficient

Shanghai Suochen  Holitech Technology

Pay attention - limited upside

The 3 months correlation between Shanghai and Holitech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Suochen Information and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology and Shanghai Suochen 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 Shanghai Suochen Information are associated (or correlated) with Holitech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holitech Technology has no effect on the direction of Shanghai Suochen i.e., Shanghai Suochen and Holitech Technology go up and down completely randomly.

Pair Corralation between Shanghai Suochen and Holitech Technology

If you would invest  150.00  in Holitech Technology Co on October 25, 2024 and sell it today you would earn a total of  55.00  from holding Holitech Technology Co or generate 36.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Shanghai Suochen Information  vs.  Holitech Technology Co

Shanghai Suochen Inf

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Shanghai Suochen Information has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Shanghai Suochen is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Holitech Technology

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Holitech Technology Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Holitech Technology sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Shanghai Suochen and Holitech Technology

The main advantage of trading using opposite Shanghai Suochen and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Suochen position performs unexpectedly, Holitech Technology 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 Holitech Technology will offset losses from the drop in Holitech Technology's long position.

The idea behind Shanghai Suochen Information and Holitech Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.