Correlation Between Hoshine Silicon and Xinxiang Chemical
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By analyzing existing cross correlation between Hoshine Silicon Ind and Xinxiang Chemical Fiber, you can compare the effects of market volatilities on Hoshine Silicon and Xinxiang Chemical 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 Xinxiang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Xinxiang Chemical.
Diversification Opportunities for Hoshine Silicon and Xinxiang Chemical
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hoshine and Xinxiang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Xinxiang Chemical Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinxiang Chemical Fiber 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 Xinxiang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinxiang Chemical Fiber has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Xinxiang Chemical go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Xinxiang Chemical
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the Xinxiang Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Hoshine Silicon Ind is 3.57 times less risky than Xinxiang Chemical. The stock trades about -0.04 of its potential returns per unit of risk. The Xinxiang Chemical Fiber is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 378.00 in Xinxiang Chemical Fiber on September 15, 2024 and sell it today you would earn a total of 76.00 from holding Xinxiang Chemical Fiber or generate 20.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Xinxiang Chemical Fiber
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Xinxiang Chemical Fiber |
Hoshine Silicon and Xinxiang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Xinxiang Chemical
The main advantage of trading using opposite Hoshine Silicon and Xinxiang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Xinxiang Chemical 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 Xinxiang Chemical will offset losses from the drop in Xinxiang Chemical'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 |
| Xinxiang Chemical vs. Zijin Mining Group | Xinxiang Chemical vs. Wanhua Chemical Group | Xinxiang Chemical vs. Baoshan Iron Steel | Xinxiang Chemical 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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