Correlation Between Hoshine Silicon and Shanxi Tond
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By analyzing existing cross correlation between Hoshine Silicon Ind and Shanxi Tond Chemical, you can compare the effects of market volatilities on Hoshine Silicon and Shanxi Tond 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 Shanxi Tond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Shanxi Tond.
Diversification Opportunities for Hoshine Silicon and Shanxi Tond
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hoshine and Shanxi is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Shanxi Tond Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Tond Chemical 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 Shanxi Tond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Tond Chemical has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Shanxi Tond go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Shanxi Tond
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the Shanxi Tond. In addition to that, Hoshine Silicon is 1.05 times more volatile than Shanxi Tond Chemical. It trades about -0.03 of its total potential returns per unit of risk. Shanxi Tond Chemical is currently generating about 0.0 per unit of volatility. If you would invest 500.00 in Shanxi Tond Chemical on October 14, 2024 and sell it today you would lose (10.00) from holding Shanxi Tond Chemical or give up 2.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Shanxi Tond Chemical
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Shanxi Tond Chemical |
Hoshine Silicon and Shanxi Tond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Shanxi Tond
The main advantage of trading using opposite Hoshine Silicon and Shanxi Tond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Shanxi Tond 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 Shanxi Tond will offset losses from the drop in Shanxi Tond's long position.| Hoshine Silicon vs. Jiangsu Yueda Investment | Hoshine Silicon vs. Henan Shuanghui Investment | Hoshine Silicon vs. Impulse Qingdao Health | Hoshine Silicon vs. Shanghai Material Trading |
| Shanxi Tond vs. Tibet Huayu Mining | Shanxi Tond vs. Hefei Metalforming Mach | Shanxi Tond vs. Beijing HuaYuanYiTong Thermal | Shanxi Tond vs. Xinjiang Baodi 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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