Correlation Between Guangxi Guitang and Hoshine Silicon
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By analyzing existing cross correlation between Guangxi Guitang Group and Hoshine Silicon Ind, you can compare the effects of market volatilities on Guangxi Guitang 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 Guangxi Guitang with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Guitang and Hoshine Silicon.
Diversification Opportunities for Guangxi Guitang and Hoshine Silicon
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangxi and Hoshine is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Guitang Group 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 Guangxi Guitang 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 Guangxi Guitang Group 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 Guangxi Guitang i.e., Guangxi Guitang and Hoshine Silicon go up and down completely randomly.
Pair Corralation between Guangxi Guitang and Hoshine Silicon
Assuming the 90 days trading horizon Guangxi Guitang Group is expected to generate 3.88 times more return on investment than Hoshine Silicon. However, Guangxi Guitang is 3.88 times more volatile than Hoshine Silicon Ind. It trades about 0.84 of its potential returns per unit of risk. Hoshine Silicon Ind is currently generating about 0.11 per unit of risk. If you would invest 582.00 in Guangxi Guitang Group on September 4, 2024 and sell it today you would earn a total of 1,188 from holding Guangxi Guitang Group or generate 204.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Guitang Group vs. Hoshine Silicon Ind
Performance |
| Timeline |
| Guangxi Guitang Group |
| Hoshine Silicon Ind |
Guangxi Guitang and Hoshine Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Guitang and Hoshine Silicon
The main advantage of trading using opposite Guangxi Guitang and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Guitang 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.| Guangxi Guitang vs. Zijin Mining Group | Guangxi Guitang vs. Wanhua Chemical Group | Guangxi Guitang vs. Baoshan Iron Steel | Guangxi Guitang vs. Shandong Gold Mining |
| Hoshine Silicon vs. Xingguang Agricultural Mach | Hoshine Silicon vs. Long Yuan Construction | Hoshine Silicon vs. Jiangsu Yanghe Brewery | Hoshine Silicon vs. Ningxia Younglight Chemicals |
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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