Correlation Between China Aluminum and Hoshine Silicon
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By analyzing existing cross correlation between China Aluminum International and Hoshine Silicon Ind, you can compare the effects of market volatilities on China Aluminum 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 China Aluminum with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aluminum and Hoshine Silicon.
Diversification Opportunities for China Aluminum and Hoshine Silicon
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Hoshine is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding China Aluminum International 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 China Aluminum 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 China Aluminum International 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 China Aluminum i.e., China Aluminum and Hoshine Silicon go up and down completely randomly.
Pair Corralation between China Aluminum and Hoshine Silicon
Assuming the 90 days trading horizon China Aluminum International is expected to under-perform the Hoshine Silicon. In addition to that, China Aluminum is 1.01 times more volatile than Hoshine Silicon Ind. It trades about -0.04 of its total potential returns per unit of risk. Hoshine Silicon Ind is currently generating about 0.11 per unit of volatility. If you would invest 5,759 in Hoshine Silicon Ind on September 4, 2024 and sell it today you would earn a total of 209.00 from holding Hoshine Silicon Ind or generate 3.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aluminum International vs. Hoshine Silicon Ind
Performance |
| Timeline |
| China Aluminum Inter |
| Hoshine Silicon Ind |
China Aluminum and Hoshine Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aluminum and Hoshine Silicon
The main advantage of trading using opposite China Aluminum and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aluminum 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.| China Aluminum vs. Shanghai Yanpu Metal | China Aluminum vs. Ningbo Thermal Power | China Aluminum vs. Ningbo MedicalSystem Biotechnology | China Aluminum vs. China Nonferrous Metal |
| Hoshine Silicon vs. Xingguang Agricultural Mach | Hoshine Silicon vs. Long Yuan Construction | Hoshine Silicon vs. Jiangsu Yanghe Brewery | Hoshine Silicon vs. Ningxia Younglight Chemicals |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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