Correlation Between Henan Shuanghui and Hoshine Silicon
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By analyzing existing cross correlation between Henan Shuanghui Investment and Hoshine Silicon Ind, you can compare the effects of market volatilities on Henan Shuanghui 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 Henan Shuanghui with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Hoshine Silicon.
Diversification Opportunities for Henan Shuanghui and Hoshine Silicon
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Henan and Hoshine is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui 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 Henan Shuanghui 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 Henan Shuanghui 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 Henan Shuanghui i.e., Henan Shuanghui and Hoshine Silicon go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Hoshine Silicon
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.87 times more return on investment than Hoshine Silicon. However, Henan Shuanghui Investment is 1.15 times less risky than Hoshine Silicon. It trades about 0.1 of its potential returns per unit of risk. Hoshine Silicon Ind is currently generating about -0.22 per unit of risk. If you would invest 2,436 in Henan Shuanghui Investment on October 28, 2024 and sell it today you would earn a total of 107.00 from holding Henan Shuanghui Investment or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Hoshine Silicon Ind
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Hoshine Silicon Ind |
Henan Shuanghui and Hoshine Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Hoshine Silicon
The main advantage of trading using opposite Henan Shuanghui and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui 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.| Henan Shuanghui vs. Beijing Jiaman Dress | Henan Shuanghui vs. Xinhua Winshare Publishing | Henan Shuanghui vs. Shandong Publishing Media | Henan Shuanghui vs. Guocheng Mining Co |
| Hoshine Silicon vs. Zijin Mining Group | Hoshine Silicon vs. Wanhua Chemical Group | Hoshine Silicon vs. Baoshan Iron Steel | Hoshine Silicon vs. Shandong Gold Mining |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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