Correlation Between Holitech Technology and Huaxia Fund
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By analyzing existing cross correlation between Holitech Technology Co and Huaxia Fund Management, you can compare the effects of market volatilities on Holitech Technology and Huaxia Fund 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 Huaxia Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Huaxia Fund.
Diversification Opportunities for Holitech Technology and Huaxia Fund
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Holitech and Huaxia is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Huaxia Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Fund Management 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 Huaxia Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Fund Management has no effect on the direction of Holitech Technology i.e., Holitech Technology and Huaxia Fund go up and down completely randomly.
Pair Corralation between Holitech Technology and Huaxia Fund
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 3.46 times more return on investment than Huaxia Fund. However, Holitech Technology is 3.46 times more volatile than Huaxia Fund Management. It trades about 0.31 of its potential returns per unit of risk. Huaxia Fund Management is currently generating about 0.03 per unit of risk. If you would invest 129.00 in Holitech Technology Co on September 12, 2024 and sell it today you would earn a total of 99.00 from holding Holitech Technology Co or generate 76.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Holitech Technology Co vs. Huaxia Fund Management
Performance |
Timeline |
Holitech Technology |
Huaxia Fund Management |
Holitech Technology and Huaxia Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Holitech Technology and Huaxia Fund
The main advantage of trading using opposite Holitech Technology and Huaxia Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Huaxia Fund 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 Huaxia Fund will offset losses from the drop in Huaxia Fund's long position.The idea behind Holitech Technology Co and Huaxia Fund Management 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.
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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