Correlation Between Hoshine Silicon and ADAMA
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By analyzing existing cross correlation between Hoshine Silicon Ind and ADAMA, you can compare the effects of market volatilities on Hoshine Silicon and ADAMA 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 ADAMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and ADAMA.
Diversification Opportunities for Hoshine Silicon and ADAMA
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hoshine and ADAMA is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and ADAMA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADAMA 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 ADAMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADAMA has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and ADAMA go up and down completely randomly.
Pair Corralation between Hoshine Silicon and ADAMA
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the ADAMA. But the stock apears to be less risky and, when comparing its historical volatility, Hoshine Silicon Ind is 1.01 times less risky than ADAMA. The stock trades about -0.04 of its potential returns per unit of risk. The ADAMA is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 981.00 in ADAMA on August 30, 2024 and sell it today you would lose (317.00) from holding ADAMA or give up 32.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. ADAMA
Performance |
| Timeline |
| Hoshine Silicon Ind |
| ADAMA |
Hoshine Silicon and ADAMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and ADAMA
The main advantage of trading using opposite Hoshine Silicon and ADAMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, ADAMA 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 ADAMA will offset losses from the drop in ADAMA's long position.| Hoshine Silicon vs. Zijin Mining Group | Hoshine Silicon vs. Wanhua Chemical Group | Hoshine Silicon vs. Baoshan Iron Steel | Hoshine Silicon vs. Shandong Gold Mining |
| ADAMA vs. Zijin Mining Group | ADAMA vs. Wanhua Chemical Group | ADAMA vs. Baoshan Iron Steel | ADAMA vs. Shandong Gold Mining |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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