Correlation Between Huafa Industrial and National Silicon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Huafa Industrial Co and National Silicon Industry, you can compare the effects of market volatilities on Huafa Industrial and National 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 Huafa Industrial with a short position of National Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and National Silicon.
Diversification Opportunities for Huafa Industrial and National Silicon
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huafa and National is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co and National Silicon Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Silicon Industry and Huafa Industrial 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 Huafa Industrial Co are associated (or correlated) with National Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Silicon Industry has no effect on the direction of Huafa Industrial i.e., Huafa Industrial and National Silicon go up and down completely randomly.
Pair Corralation between Huafa Industrial and National Silicon
Assuming the 90 days trading horizon Huafa Industrial Co is expected to under-perform the National Silicon. But the stock apears to be less risky and, when comparing its historical volatility, Huafa Industrial Co is 1.44 times less risky than National Silicon. The stock trades about -0.01 of its potential returns per unit of risk. The National Silicon Industry is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,367 in National Silicon Industry on September 1, 2024 and sell it today you would earn a total of 790.00 from holding National Silicon Industry or generate 57.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. National Silicon Industry
Performance |
| Timeline |
| Huafa Industrial |
| National Silicon Industry |
Huafa Industrial and National Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and National Silicon
The main advantage of trading using opposite Huafa Industrial and National Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial position performs unexpectedly, National 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 National Silicon will offset losses from the drop in National Silicon's long position.| Huafa Industrial vs. BeiGene | Huafa Industrial vs. Kweichow Moutai Co | Huafa Industrial vs. Beijing Roborock Technology | Huafa Industrial vs. G bits Network Technology |
| National Silicon vs. Industrial and Commercial | National Silicon vs. Kweichow Moutai Co | National Silicon vs. Agricultural Bank of | National Silicon vs. China Mobile Limited |
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.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |