Correlation Between Hoshine Silicon and Cofco Biochemical
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By analyzing existing cross correlation between Hoshine Silicon Ind and Cofco Biochemical Anhui, you can compare the effects of market volatilities on Hoshine Silicon and Cofco Biochemical 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 Cofco Biochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Cofco Biochemical.
Diversification Opportunities for Hoshine Silicon and Cofco Biochemical
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Cofco is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Cofco Biochemical Anhui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cofco Biochemical Anhui 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 Cofco Biochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cofco Biochemical Anhui has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Cofco Biochemical go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Cofco Biochemical
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the Cofco Biochemical. In addition to that, Hoshine Silicon is 1.16 times more volatile than Cofco Biochemical Anhui. It trades about -0.12 of its total potential returns per unit of risk. Cofco Biochemical Anhui is currently generating about -0.04 per unit of volatility. If you would invest 604.00 in Cofco Biochemical Anhui on September 12, 2024 and sell it today you would lose (7.00) from holding Cofco Biochemical Anhui or give up 1.16% 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. Cofco Biochemical Anhui
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Cofco Biochemical Anhui |
Hoshine Silicon and Cofco Biochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Cofco Biochemical
The main advantage of trading using opposite Hoshine Silicon and Cofco Biochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Cofco Biochemical 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 Cofco Biochemical will offset losses from the drop in Cofco Biochemical's long position.| Hoshine Silicon vs. Zijin Mining Group | Hoshine Silicon vs. Wanhua Chemical Group | Hoshine Silicon vs. Baoshan Iron Steel | Hoshine Silicon vs. Rongsheng Petrochemical Co |
| Cofco Biochemical vs. Zijin Mining Group | Cofco Biochemical vs. Wanhua Chemical Group | Cofco Biochemical vs. Baoshan Iron Steel | Cofco Biochemical vs. Rongsheng Petrochemical 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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