Correlation Between Hoshine Silicon and Sichuan Yahua
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By analyzing existing cross correlation between Hoshine Silicon Ind and Sichuan Yahua Industrial, you can compare the effects of market volatilities on Hoshine Silicon and Sichuan Yahua 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 Sichuan Yahua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Sichuan Yahua.
Diversification Opportunities for Hoshine Silicon and Sichuan Yahua
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hoshine and Sichuan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Sichuan Yahua Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Yahua Industrial 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 Sichuan Yahua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Yahua Industrial has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Sichuan Yahua go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Sichuan Yahua
Assuming the 90 days trading horizon Hoshine Silicon is expected to generate 2.55 times less return on investment than Sichuan Yahua. But when comparing it to its historical volatility, Hoshine Silicon Ind is 1.01 times less risky than Sichuan Yahua. It trades about 0.09 of its potential returns per unit of risk. Sichuan Yahua Industrial is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 875.00 in Sichuan Yahua Industrial on August 25, 2024 and sell it today you would earn a total of 339.00 from holding Sichuan Yahua Industrial or generate 38.74% 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. Sichuan Yahua Industrial
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Sichuan Yahua Industrial |
Hoshine Silicon and Sichuan Yahua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Sichuan Yahua
The main advantage of trading using opposite Hoshine Silicon and Sichuan Yahua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Sichuan Yahua 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 Sichuan Yahua will offset losses from the drop in Sichuan Yahua'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 |
| Sichuan Yahua vs. Changchun UP Optotech | Sichuan Yahua vs. Anhui Deli Household | Sichuan Yahua vs. Kangping Technology Co | Sichuan Yahua vs. CGN Nuclear Technology |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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