Correlation Between Hoshine Silicon and Shenzhen Noposion
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By analyzing existing cross correlation between Hoshine Silicon Ind and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Hoshine Silicon and Shenzhen Noposion 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 Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Shenzhen Noposion.
Diversification Opportunities for Hoshine Silicon and Shenzhen Noposion
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hoshine and Shenzhen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion 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 Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Shenzhen Noposion
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the Shenzhen Noposion. But the stock apears to be less risky and, when comparing its historical volatility, Hoshine Silicon Ind is 1.34 times less risky than Shenzhen Noposion. The stock trades about -0.18 of its potential returns per unit of risk. The Shenzhen Noposion Agrochemicals is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 961.00 in Shenzhen Noposion Agrochemicals on August 28, 2024 and sell it today you would lose (15.00) from holding Shenzhen Noposion Agrochemicals or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Shenzhen Noposion Agrochemical
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Shenzhen Noposion |
Hoshine Silicon and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Shenzhen Noposion
The main advantage of trading using opposite Hoshine Silicon and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Shenzhen Noposion 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 Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion's long position.| Hoshine Silicon vs. Air China Ltd | Hoshine Silicon vs. Bangyan Technology Co | Hoshine Silicon vs. Ningbo Fangzheng Automobile | Hoshine Silicon vs. Zhongshan Public Utilities |
| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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