Correlation Between Hoshine Silicon and Maoming Petro
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By analyzing existing cross correlation between Hoshine Silicon Ind and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Hoshine Silicon and Maoming Petro 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 Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Maoming Petro.
Diversification Opportunities for Hoshine Silicon and Maoming Petro
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Maoming is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro 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 Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Maoming Petro go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Maoming Petro
Assuming the 90 days trading horizon Hoshine Silicon is expected to generate 3.45 times less return on investment than Maoming Petro. But when comparing it to its historical volatility, Hoshine Silicon Ind is 1.65 times less risky than Maoming Petro. It trades about 0.08 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 365.00 in Maoming Petro Chemical Shihua on September 3, 2024 and sell it today you would earn a total of 35.00 from holding Maoming Petro Chemical Shihua or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Maoming Petro Chemical |
Hoshine Silicon and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Maoming Petro
The main advantage of trading using opposite Hoshine Silicon and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro'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 |
| Maoming Petro vs. Zijin Mining Group | Maoming Petro vs. Baoshan Iron Steel | Maoming Petro vs. Rongsheng Petrochemical Co | Maoming Petro 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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