Correlation Between Xiamen Goldenhome and Hoshine Silicon
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Hoshine Silicon Ind, you can compare the effects of market volatilities on Xiamen Goldenhome 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 Xiamen Goldenhome with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Hoshine Silicon.
Diversification Opportunities for Xiamen Goldenhome and Hoshine Silicon
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiamen and Hoshine is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome 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 Xiamen Goldenhome 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 Xiamen Goldenhome 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 Xiamen Goldenhome i.e., Xiamen Goldenhome and Hoshine Silicon go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Hoshine Silicon
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to generate 1.34 times more return on investment than Hoshine Silicon. However, Xiamen Goldenhome is 1.34 times more volatile than Hoshine Silicon Ind. It trades about 0.21 of its potential returns per unit of risk. Hoshine Silicon Ind is currently generating about 0.08 per unit of risk. If you would invest 1,978 in Xiamen Goldenhome Co on September 3, 2024 and sell it today you would earn a total of 192.00 from holding Xiamen Goldenhome Co or generate 9.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Hoshine Silicon Ind
Performance |
| Timeline |
| Xiamen Goldenhome |
| Hoshine Silicon Ind |
Xiamen Goldenhome and Hoshine Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Hoshine Silicon
The main advantage of trading using opposite Xiamen Goldenhome and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome 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.| Xiamen Goldenhome vs. PetroChina Co Ltd | Xiamen Goldenhome vs. China Mobile Limited | Xiamen Goldenhome vs. Industrial and Commercial | Xiamen Goldenhome vs. China Life Insurance |
| Hoshine Silicon vs. Keda Clean Energy | Hoshine Silicon vs. China Aluminum International | Hoshine Silicon vs. Beijing Jiaman Dress | Hoshine Silicon vs. Dhc Software Co |
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.
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