Correlation Between Hoshine Silicon and Xiangtan Electrochemical
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By analyzing existing cross correlation between Hoshine Silicon Ind and Xiangtan Electrochemical Scientific, you can compare the effects of market volatilities on Hoshine Silicon and Xiangtan Electrochemical 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 Xiangtan Electrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Xiangtan Electrochemical.
Diversification Opportunities for Hoshine Silicon and Xiangtan Electrochemical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Xiangtan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Xiangtan Electrochemical Scien in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangtan Electrochemical 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 Xiangtan Electrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangtan Electrochemical has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Xiangtan Electrochemical go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Xiangtan Electrochemical
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the Xiangtan Electrochemical. But the stock apears to be less risky and, when comparing its historical volatility, Hoshine Silicon Ind is 1.21 times less risky than Xiangtan Electrochemical. The stock trades about -0.01 of its potential returns per unit of risk. The Xiangtan Electrochemical Scientific is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,174 in Xiangtan Electrochemical Scientific on September 2, 2024 and sell it today you would lose (15.00) from holding Xiangtan Electrochemical Scientific or give up 1.28% 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. Xiangtan Electrochemical Scien
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Xiangtan Electrochemical |
Hoshine Silicon and Xiangtan Electrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Xiangtan Electrochemical
The main advantage of trading using opposite Hoshine Silicon and Xiangtan Electrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Xiangtan Electrochemical 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 Xiangtan Electrochemical will offset losses from the drop in Xiangtan Electrochemical's long position.| Hoshine Silicon vs. Mingchen Health Co | Hoshine Silicon vs. Dezhan HealthCare Co | Hoshine Silicon vs. Andon Health Co | Hoshine Silicon vs. Guangdong Shenglu Telecommunication |
| Xiangtan Electrochemical vs. Zijin Mining Group | Xiangtan Electrochemical vs. Wanhua Chemical Group | Xiangtan Electrochemical vs. Baoshan Iron Steel | Xiangtan Electrochemical 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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