Correlation Between Holitech Technology and Guangzhou Jinyi
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By analyzing existing cross correlation between Holitech Technology Co and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Holitech Technology and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Guangzhou Jinyi.
Diversification Opportunities for Holitech Technology and Guangzhou Jinyi
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Guangzhou is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Holitech Technology i.e., Holitech Technology and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Holitech Technology and Guangzhou Jinyi
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 0.8 times more return on investment than Guangzhou Jinyi. However, Holitech Technology Co is 1.25 times less risky than Guangzhou Jinyi. It trades about 0.22 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.13 per unit of risk. If you would invest 219.00 in Holitech Technology Co on September 30, 2024 and sell it today you would earn a total of 32.00 from holding Holitech Technology Co or generate 14.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Holitech Technology Co vs. Guangzhou Jinyi Media
Performance |
Timeline |
Holitech Technology |
Guangzhou Jinyi Media |
Holitech Technology and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Holitech Technology and Guangzhou Jinyi
The main advantage of trading using opposite Holitech Technology and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.Holitech Technology vs. Industrial and Commercial | Holitech Technology vs. China Construction Bank | Holitech Technology vs. Agricultural Bank of | Holitech Technology vs. Bank of China |
Guangzhou Jinyi vs. Cultural Investment Holdings | Guangzhou Jinyi vs. Gome Telecom Equipment | Guangzhou Jinyi vs. Bus Online Co | Guangzhou Jinyi vs. Holitech Technology Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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