Correlation Between Hoshine Silicon and Kuangda Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hoshine Silicon Ind and Kuangda Technology Group, you can compare the effects of market volatilities on Hoshine Silicon and Kuangda Technology 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 Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Kuangda Technology.
Diversification Opportunities for Hoshine Silicon and Kuangda Technology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Kuangda is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Kuangda Technology go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Kuangda Technology
Assuming the 90 days trading horizon Hoshine Silicon is expected to generate 3.67 times less return on investment than Kuangda Technology. But when comparing it to its historical volatility, Hoshine Silicon Ind is 2.88 times less risky than Kuangda Technology. It trades about 0.02 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 516.00 in Kuangda Technology Group on September 27, 2024 and sell it today you would earn a total of 5.00 from holding Kuangda Technology Group or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Kuangda Technology Group
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Kuangda Technology |
Hoshine Silicon and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Kuangda Technology
The main advantage of trading using opposite Hoshine Silicon and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology'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 |
| Kuangda Technology vs. Eastroc Beverage Group | Kuangda Technology vs. Hubei Dinglong Chemical | Kuangda Technology vs. Guangzhou Seagull Kitchen | Kuangda Technology vs. Guizhou Chanhen Chemical |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |