Correlation Between Hoshine Silicon and Tianjin LVYIN
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By analyzing existing cross correlation between Hoshine Silicon Ind and Tianjin LVYIN Landscape, you can compare the effects of market volatilities on Hoshine Silicon and Tianjin LVYIN 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 Tianjin LVYIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Tianjin LVYIN.
Diversification Opportunities for Hoshine Silicon and Tianjin LVYIN
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hoshine and Tianjin is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Tianjin LVYIN Landscape in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin LVYIN Landscape 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 Tianjin LVYIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin LVYIN Landscape has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Tianjin LVYIN go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Tianjin LVYIN
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the Tianjin LVYIN. But the stock apears to be less risky and, when comparing its historical volatility, Hoshine Silicon Ind is 1.18 times less risky than Tianjin LVYIN. The stock trades about -0.04 of its potential returns per unit of risk. The Tianjin LVYIN Landscape is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 860.00 in Tianjin LVYIN Landscape on October 15, 2024 and sell it today you would lose (218.00) from holding Tianjin LVYIN Landscape or give up 25.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Tianjin LVYIN Landscape
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Tianjin LVYIN Landscape |
Hoshine Silicon and Tianjin LVYIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Tianjin LVYIN
The main advantage of trading using opposite Hoshine Silicon and Tianjin LVYIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Tianjin LVYIN 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 Tianjin LVYIN will offset losses from the drop in Tianjin LVYIN's long position.| Hoshine Silicon vs. Beijing YanDong MicroElectronic | Hoshine Silicon vs. Duzhe Publishing Media | Hoshine Silicon vs. Hengdian Entertainment Co | Hoshine Silicon vs. Guangdong Jinma Entertainment |
| Tianjin LVYIN vs. Shandong Rike Chemical | Tianjin LVYIN vs. Longxing Chemical Stock | Tianjin LVYIN vs. Shenzhen Noposion Agrochemicals | Tianjin LVYIN vs. Ningxia Younglight Chemicals |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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