Correlation Between Holitech Technology and Xinya Electronic
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By analyzing existing cross correlation between Holitech Technology Co and Xinya Electronic Co, you can compare the effects of market volatilities on Holitech Technology and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holitech Technology and Xinya Electronic.
Diversification Opportunities for Holitech Technology and Xinya Electronic
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Holitech and Xinya is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Holitech Technology Co and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Holitech Technology i.e., Holitech Technology and Xinya Electronic go up and down completely randomly.
Pair Corralation between Holitech Technology and Xinya Electronic
Assuming the 90 days trading horizon Holitech Technology Co is expected to generate 1.17 times more return on investment than Xinya Electronic. However, Holitech Technology is 1.17 times more volatile than Xinya Electronic Co. It trades about 0.35 of its potential returns per unit of risk. Xinya Electronic Co 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 124.00 from holding Holitech Technology Co or generate 97.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.36% |
Values | Daily Returns |
Holitech Technology Co vs. Xinya Electronic Co
Performance |
Timeline |
Holitech Technology |
Xinya Electronic |
Holitech Technology and Xinya Electronic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Holitech Technology and Xinya Electronic
The main advantage of trading using opposite Holitech Technology and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holitech Technology position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic'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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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