Correlation Between Western Mining and Hoshine Silicon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Western Mining Co and Hoshine Silicon Ind, you can compare the effects of market volatilities on Western Mining 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 Western Mining with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Mining and Hoshine Silicon.
Diversification Opportunities for Western Mining and Hoshine Silicon
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and Hoshine is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Western Mining Co 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 Western Mining 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 Western Mining Co 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 Western Mining i.e., Western Mining and Hoshine Silicon go up and down completely randomly.
Pair Corralation between Western Mining and Hoshine Silicon
Assuming the 90 days trading horizon Western Mining is expected to generate 1.54 times less return on investment than Hoshine Silicon. But when comparing it to its historical volatility, Western Mining Co is 1.28 times less risky than Hoshine Silicon. It trades about 0.08 of its potential returns per unit of risk. Hoshine Silicon Ind is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,080 in Hoshine Silicon Ind on September 2, 2024 and sell it today you would earn a total of 830.00 from holding Hoshine Silicon Ind or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Mining Co vs. Hoshine Silicon Ind
Performance |
| Timeline |
| Western Mining |
| Hoshine Silicon Ind |
Western Mining and Hoshine Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Mining and Hoshine Silicon
The main advantage of trading using opposite Western Mining and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Mining 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.| Western Mining vs. Cultural Investment Holdings | Western Mining vs. JCHX Mining Management | Western Mining vs. Zoje Resources Investment | Western Mining vs. Zhejiang Construction Investment |
| Hoshine Silicon vs. Mingchen Health Co | Hoshine Silicon vs. Dezhan HealthCare Co | Hoshine Silicon vs. Andon Health Co | Hoshine Silicon vs. Guangdong Shenglu Telecommunication |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |