Correlation Between Hsinli Chemical and Phoenix Silicon
Can any of the company-specific risk be diversified away by investing in both Hsinli Chemical and Phoenix Silicon at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hsinli Chemical and Phoenix Silicon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hsinli Chemical Industrial and Phoenix Silicon International, you can compare the effects of market volatilities on Hsinli Chemical and Phoenix 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 Hsinli Chemical with a short position of Phoenix Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hsinli Chemical and Phoenix Silicon.
Diversification Opportunities for Hsinli Chemical and Phoenix Silicon
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hsinli and Phoenix is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hsinli Chemical Industrial and Phoenix Silicon International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Silicon Inte and Hsinli Chemical 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 Hsinli Chemical Industrial are associated (or correlated) with Phoenix Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Silicon Inte has no effect on the direction of Hsinli Chemical i.e., Hsinli Chemical and Phoenix Silicon go up and down completely randomly.
Pair Corralation between Hsinli Chemical and Phoenix Silicon
Assuming the 90 days trading horizon Hsinli Chemical Industrial is expected to generate 0.85 times more return on investment than Phoenix Silicon. However, Hsinli Chemical Industrial is 1.17 times less risky than Phoenix Silicon. It trades about 0.01 of its potential returns per unit of risk. Phoenix Silicon International is currently generating about -0.02 per unit of risk. If you would invest 4,820 in Hsinli Chemical Industrial on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Hsinli Chemical Industrial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hsinli Chemical Industrial vs. Phoenix Silicon International
Performance |
| Timeline |
| Hsinli Chemical Indu |
| Phoenix Silicon Inte |
Hsinli Chemical and Phoenix Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hsinli Chemical and Phoenix Silicon
The main advantage of trading using opposite Hsinli Chemical and Phoenix Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hsinli Chemical position performs unexpectedly, Phoenix 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 Phoenix Silicon will offset losses from the drop in Phoenix Silicon's long position.| Hsinli Chemical vs. Microelectronics Technology | Hsinli Chemical vs. Intai Technology | Hsinli Chemical vs. Pontex Polyblend CoLtd | Hsinli Chemical vs. Aker Technology Co |
| Phoenix Silicon vs. Scientech Corp | Phoenix Silicon vs. Sitronix Technology Corp | Phoenix Silicon vs. Kinsus Interconnect Technology | Phoenix Silicon vs. Andes Technology Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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