Correlation Between Guangdong Jinma and Hoshine Silicon
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Hoshine Silicon Ind, you can compare the effects of market volatilities on Guangdong Jinma 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 Guangdong Jinma with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Hoshine Silicon.
Diversification Opportunities for Guangdong Jinma and Hoshine Silicon
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Hoshine is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment 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 Guangdong Jinma 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 Guangdong Jinma Entertainment 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 Guangdong Jinma i.e., Guangdong Jinma and Hoshine Silicon go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Hoshine Silicon
Assuming the 90 days trading horizon Guangdong Jinma Entertainment is expected to generate 1.45 times more return on investment than Hoshine Silicon. However, Guangdong Jinma is 1.45 times more volatile than Hoshine Silicon Ind. It trades about 0.01 of its potential returns per unit of risk. Hoshine Silicon Ind is currently generating about -0.04 per unit of risk. If you would invest 1,571 in Guangdong Jinma Entertainment on October 16, 2024 and sell it today you would lose (143.00) from holding Guangdong Jinma Entertainment or give up 9.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinma Entertainment vs. Hoshine Silicon Ind
Performance |
| Timeline |
| Guangdong Jinma Ente |
| Hoshine Silicon Ind |
Guangdong Jinma and Hoshine Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and Hoshine Silicon
The main advantage of trading using opposite Guangdong Jinma and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma 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.| Guangdong Jinma vs. Shenzhen Bioeasy Biotechnology | Guangdong Jinma vs. Beijing Mainstreets Investment | Guangdong Jinma vs. Luyin Investment Group | Guangdong Jinma vs. Shandong Sanyuan Biotechnology |
| Hoshine Silicon vs. Beijing YanDong MicroElectronic | Hoshine Silicon vs. Duzhe Publishing Media | Hoshine Silicon vs. Hengdian Entertainment Co | Hoshine Silicon vs. Guangdong Jinma Entertainment |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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