Correlation Between Holitech Technology and Suzhou Douson
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By analyzing existing cross correlation between Holitech Technology Co and Suzhou Douson Drilling, you can compare the effects of market volatilities on Holitech Technology and Suzhou Douson 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 Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Suzhou Douson.
Diversification Opportunities for Holitech Technology and Suzhou Douson
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Holitech and Suzhou is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Suzhou Douson Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Douson Drilling 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 Suzhou Douson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Douson Drilling has no effect on the direction of Holitech Technology i.e., Holitech Technology and Suzhou Douson go up and down completely randomly.
Pair Corralation between Holitech Technology and Suzhou Douson
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 0.84 times more return on investment than Suzhou Douson. However, Holitech Technology Co is 1.18 times less risky than Suzhou Douson. It trades about 0.35 of its potential returns per unit of risk. Suzhou Douson Drilling is currently generating about 0.18 per unit of risk. If you would invest 127.00 in Holitech Technology Co on September 24, 2024 and sell it today you would earn a total of 123.00 from holding Holitech Technology Co or generate 96.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Holitech Technology Co vs. Suzhou Douson Drilling
Performance |
Timeline |
Holitech Technology |
Suzhou Douson Drilling |
Holitech Technology and Suzhou Douson Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Holitech Technology and Suzhou Douson
The main advantage of trading using opposite Holitech Technology and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Suzhou Douson 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 Suzhou Douson will offset losses from the drop in Suzhou Douson's long position.Holitech Technology vs. Zhongtong Guomai Communication | Holitech Technology vs. Wintao Communications Co | Holitech Technology vs. China Satellite Communications | Holitech Technology vs. Hainan Airlines Co |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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