Correlation Between Dongguan Aohai and Hoshine Silicon
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By analyzing existing cross correlation between Dongguan Aohai Technology and Hoshine Silicon Ind, you can compare the effects of market volatilities on Dongguan Aohai 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 Dongguan Aohai with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Aohai and Hoshine Silicon.
Diversification Opportunities for Dongguan Aohai and Hoshine Silicon
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongguan and Hoshine is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Aohai Technology 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 Dongguan Aohai 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 Dongguan Aohai Technology 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 Dongguan Aohai i.e., Dongguan Aohai and Hoshine Silicon go up and down completely randomly.
Pair Corralation between Dongguan Aohai and Hoshine Silicon
Assuming the 90 days trading horizon Dongguan Aohai Technology is expected to generate 3.21 times more return on investment than Hoshine Silicon. However, Dongguan Aohai is 3.21 times more volatile than Hoshine Silicon Ind. It trades about 0.26 of its potential returns per unit of risk. Hoshine Silicon Ind is currently generating about 0.02 per unit of risk. If you would invest 3,251 in Dongguan Aohai Technology on September 27, 2024 and sell it today you would earn a total of 801.00 from holding Dongguan Aohai Technology or generate 24.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Aohai Technology vs. Hoshine Silicon Ind
Performance |
| Timeline |
| Dongguan Aohai Technology |
| Hoshine Silicon Ind |
Dongguan Aohai and Hoshine Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Aohai and Hoshine Silicon
The main advantage of trading using opposite Dongguan Aohai and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Aohai 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.| Dongguan Aohai vs. Pengxin International Mining | Dongguan Aohai vs. Guocheng Mining Co | Dongguan Aohai vs. Zhangjiagang Freetrade Science | Dongguan Aohai vs. Chongqing Changan Automobile |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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