Correlation Between Hoshine Silicon and North Huajin
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By analyzing existing cross correlation between Hoshine Silicon Ind and North Huajin Chemical, you can compare the effects of market volatilities on Hoshine Silicon and North Huajin 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 Hoshine Silicon with a short position of North Huajin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and North Huajin.
Diversification Opportunities for Hoshine Silicon and North Huajin
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and North is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and North Huajin Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Huajin Chemical and Hoshine Silicon 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 Hoshine Silicon Ind are associated (or correlated) with North Huajin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Huajin Chemical has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and North Huajin go up and down completely randomly.
Pair Corralation between Hoshine Silicon and North Huajin
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the North Huajin. But the stock apears to be less risky and, when comparing its historical volatility, Hoshine Silicon Ind is 1.42 times less risky than North Huajin. The stock trades about -0.47 of its potential returns per unit of risk. The North Huajin Chemical is currently generating about -0.3 of returns per unit of risk over similar time horizon. If you would invest 486.00 in North Huajin Chemical on October 24, 2024 and sell it today you would lose (50.00) from holding North Huajin Chemical or give up 10.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. North Huajin Chemical
Performance |
| Timeline |
| Hoshine Silicon Ind |
| North Huajin Chemical |
Hoshine Silicon and North Huajin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and North Huajin
The main advantage of trading using opposite Hoshine Silicon and North Huajin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, North Huajin 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 North Huajin will offset losses from the drop in North Huajin's long position.| Hoshine Silicon vs. Shandong Longquan Pipeline | Hoshine Silicon vs. Anhui Jianghuai Automobile | Hoshine Silicon vs. Shanghai Shuixing Home | Hoshine Silicon vs. Iat Automobile Technology |
| North Huajin vs. Guangdong Jingyi Metal | North Huajin vs. Songz Automobile Air | North Huajin vs. Haima Automobile Group | North Huajin vs. Ningbo Fangzheng Automobile |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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