Correlation Between Jiangsu Financial and Hoshine Silicon
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Hoshine Silicon Ind, you can compare the effects of market volatilities on Jiangsu Financial 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 Jiangsu Financial with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Hoshine Silicon.
Diversification Opportunities for Jiangsu Financial and Hoshine Silicon
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Hoshine is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing 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 Jiangsu Financial 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 Jiangsu Financial Leasing 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 Jiangsu Financial i.e., Jiangsu Financial and Hoshine Silicon go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Hoshine Silicon
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 7.66 times less return on investment than Hoshine Silicon. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 1.38 times less risky than Hoshine Silicon. It trades about 0.01 of its potential returns per unit of risk. Hoshine Silicon Ind is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,920 in Hoshine Silicon Ind on August 29, 2024 and sell it today you would earn a total of 819.00 from holding Hoshine Silicon Ind or generate 16.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Hoshine Silicon Ind
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Hoshine Silicon Ind |
Jiangsu Financial and Hoshine Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Hoshine Silicon
The main advantage of trading using opposite Jiangsu Financial and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial 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.| Jiangsu Financial vs. Kweichow Moutai Co | Jiangsu Financial vs. Contemporary Amperex Technology | Jiangsu Financial vs. G bits Network Technology | Jiangsu Financial vs. BYD Co Ltd |
| Hoshine Silicon vs. Beijing Mainstreets Investment | Hoshine Silicon vs. RoadMain T Co | Hoshine Silicon vs. Shaanxi Broadcast TV | Hoshine Silicon vs. Vanfund Urban Investment |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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