Correlation Between Hoshine Silicon and Western Metal
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By analyzing existing cross correlation between Hoshine Silicon Ind and Western Metal Materials, you can compare the effects of market volatilities on Hoshine Silicon and Western Metal 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 Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Western Metal.
Diversification Opportunities for Hoshine Silicon and Western Metal
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hoshine and Western is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Western Metal go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Western Metal
Assuming the 90 days trading horizon Hoshine Silicon is expected to generate 1.42 times less return on investment than Western Metal. In addition to that, Hoshine Silicon is 1.04 times more volatile than Western Metal Materials. It trades about 0.1 of its total potential returns per unit of risk. Western Metal Materials is currently generating about 0.14 per unit of volatility. If you would invest 1,285 in Western Metal Materials on September 2, 2024 and sell it today you would earn a total of 331.00 from holding Western Metal Materials or generate 25.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Western Metal Materials
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Western Metal Materials |
Hoshine Silicon and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Western Metal
The main advantage of trading using opposite Hoshine Silicon and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal'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 |
| Western Metal vs. Zijin Mining Group | Western Metal vs. Wanhua Chemical Group | Western Metal vs. Baoshan Iron Steel | Western Metal 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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