Correlation Between Sichuan Fulin and Hoshine Silicon
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Hoshine Silicon Ind, you can compare the effects of market volatilities on Sichuan Fulin 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 Sichuan Fulin with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Hoshine Silicon.
Diversification Opportunities for Sichuan Fulin and Hoshine Silicon
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sichuan and Hoshine is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation 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 Sichuan Fulin 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 Sichuan Fulin Transportation 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 Sichuan Fulin i.e., Sichuan Fulin and Hoshine Silicon go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Hoshine Silicon
Assuming the 90 days trading horizon Sichuan Fulin is expected to generate 1.26 times less return on investment than Hoshine Silicon. In addition to that, Sichuan Fulin is 1.13 times more volatile than Hoshine Silicon Ind. It trades about 0.04 of its total potential returns per unit of risk. Hoshine Silicon Ind is currently generating about 0.05 per unit of volatility. If you would invest 4,639 in Hoshine Silicon Ind on November 3, 2024 and sell it today you would earn a total of 555.00 from holding Hoshine Silicon Ind or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Hoshine Silicon Ind
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Hoshine Silicon Ind |
Sichuan Fulin and Hoshine Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Hoshine Silicon
The main advantage of trading using opposite Sichuan Fulin and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin 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.| Sichuan Fulin vs. Runjian Communication Co | Sichuan Fulin vs. Beijing Bewinner Communications | Sichuan Fulin vs. Eastern Communications Co | Sichuan Fulin vs. Lecron Energy Saving |
| Hoshine Silicon vs. Southern PublishingMedia Co | Hoshine Silicon vs. Changchun BCHT Biotechnology | Hoshine Silicon vs. Xinhua Winshare Publishing | Hoshine Silicon vs. Zhejiang Publishing Media |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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