Correlation Between Beijing Mainstreets and Hoshine Silicon
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Hoshine Silicon Ind, you can compare the effects of market volatilities on Beijing Mainstreets and Hoshine Silicon 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 Beijing Mainstreets with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Hoshine Silicon.
Diversification Opportunities for Beijing Mainstreets and Hoshine Silicon
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Hoshine is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Hoshine Silicon Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoshine Silicon Ind and Beijing Mainstreets 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 Beijing Mainstreets Investment are associated (or correlated) with Hoshine Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoshine Silicon Ind has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Hoshine Silicon go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Hoshine Silicon
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to generate 1.26 times more return on investment than Hoshine Silicon. However, Beijing Mainstreets is 1.26 times more volatile than Hoshine Silicon Ind. It trades about 0.25 of its potential returns per unit of risk. Hoshine Silicon Ind is currently generating about 0.17 per unit of risk. If you would invest 244.00 in Beijing Mainstreets Investment on November 27, 2024 and sell it today you would earn a total of 24.00 from holding Beijing Mainstreets Investment or generate 9.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Hoshine Silicon Ind
Performance |
| Timeline |
| Beijing Mainstreets |
| Hoshine Silicon Ind |
Beijing Mainstreets and Hoshine Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Hoshine Silicon
The main advantage of trading using opposite Beijing Mainstreets and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Hoshine Silicon 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 Hoshine Silicon will offset losses from the drop in Hoshine Silicon's long position.| Beijing Mainstreets vs. Zhangjiagang Elegant Home | Beijing Mainstreets vs. Dareway Software Co | Beijing Mainstreets vs. Inspur Software Co | Beijing Mainstreets vs. UE Furniture Co |
| Hoshine Silicon vs. Tongxing Environmental Protection | Hoshine Silicon vs. Guilin Seamild Foods | Hoshine Silicon vs. Tianjin Capital Environmental | Hoshine Silicon vs. Jiangxi JDL Environmental |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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