Correlation Between SHOT Old and Raytech Holding
Can any of the company-specific risk be diversified away by investing in both SHOT Old and Raytech Holding 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 SHOT Old and Raytech Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SHOT Old and Raytech Holding Limited, you can compare the effects of market volatilities on SHOT Old and Raytech Holding 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 SHOT Old with a short position of Raytech Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHOT Old and Raytech Holding.
Diversification Opportunities for SHOT Old and Raytech Holding
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between SHOT and Raytech is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding SHOT Old and Raytech Holding Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raytech Holding and SHOT Old 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 SHOT Old are associated (or correlated) with Raytech Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raytech Holding has no effect on the direction of SHOT Old i.e., SHOT Old and Raytech Holding go up and down completely randomly.
Pair Corralation between SHOT Old and Raytech Holding
Given the investment horizon of 90 days SHOT Old is expected to generate 0.97 times more return on investment than Raytech Holding. However, SHOT Old is 1.03 times less risky than Raytech Holding. It trades about -0.11 of its potential returns per unit of risk. Raytech Holding Limited is currently generating about -0.23 per unit of risk. If you would invest 115.00 in SHOT Old on August 7, 2025 and sell it today you would lose (76.00) from holding SHOT Old or give up 66.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.02% |
| Values | Daily Returns |
SHOT Old vs. Raytech Holding Limited
Performance |
| Timeline |
| SHOT Old |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Raytech Holding |
SHOT Old and Raytech Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHOT Old and Raytech Holding
The main advantage of trading using opposite SHOT Old and Raytech Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHOT Old position performs unexpectedly, Raytech Holding 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 Raytech Holding will offset losses from the drop in Raytech Holding's long position.| SHOT Old vs. Bonk, Inc | SHOT Old vs. Barfresh Food Group | SHOT Old vs. Ruanyun Edai Technology | SHOT Old vs. CIMG Inc |
| Raytech Holding vs. Mannatech Incorporated | Raytech Holding vs. Marwynn Holdings, Common | Raytech Holding vs. Davis Commodities Limited | Raytech Holding vs. ATA Creativity Global |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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