Correlation Between Hoshine Silicon and Shengda Mining
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By analyzing existing cross correlation between Hoshine Silicon Ind and Shengda Mining Co, you can compare the effects of market volatilities on Hoshine Silicon and Shengda Mining 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 Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Shengda Mining.
Diversification Opportunities for Hoshine Silicon and Shengda Mining
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Shengda is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining 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 Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Shengda Mining go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Shengda Mining
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 0.8 times more return on investment than Shengda Mining. However, Hoshine Silicon Ind is 1.25 times less risky than Shengda Mining. It trades about 0.07 of its potential returns per unit of risk. Shengda Mining Co is currently generating about 0.02 per unit of risk. If you would invest 4,989 in Hoshine Silicon Ind on September 3, 2024 and sell it today you would earn a total of 921.00 from holding Hoshine Silicon Ind or generate 18.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.17% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Shengda Mining Co
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Shengda Mining |
Hoshine Silicon and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Shengda Mining
The main advantage of trading using opposite Hoshine Silicon and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| Hoshine Silicon vs. Keda Clean Energy | Hoshine Silicon vs. China Aluminum International | Hoshine Silicon vs. Beijing Jiaman Dress | Hoshine Silicon vs. Dhc Software Co |
| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Rongsheng Petrochemical Co | Shengda Mining vs. Hoshine Silicon Ind |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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