Correlation Between Hoshine Silicon and Guangdong Tianhe
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By analyzing existing cross correlation between Hoshine Silicon Ind and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on Hoshine Silicon and Guangdong Tianhe 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 Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Guangdong Tianhe.
Diversification Opportunities for Hoshine Silicon and Guangdong Tianhe
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hoshine and Guangdong is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr 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 Guangdong Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Guangdong Tianhe
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 0.36 times more return on investment than Guangdong Tianhe. However, Hoshine Silicon Ind is 2.75 times less risky than Guangdong Tianhe. It trades about -0.69 of its potential returns per unit of risk. Guangdong Tianhe Agricultural is currently generating about -0.42 per unit of risk. If you would invest 5,886 in Hoshine Silicon Ind on October 15, 2024 and sell it today you would lose (799.00) from holding Hoshine Silicon Ind or give up 13.57% 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. Guangdong Tianhe Agricultural
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Guangdong Tianhe Agr |
Hoshine Silicon and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Guangdong Tianhe
The main advantage of trading using opposite Hoshine Silicon and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Guangdong Tianhe 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 Guangdong Tianhe will offset losses from the drop in Guangdong Tianhe'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 |
| Guangdong Tianhe vs. Penyao Environmental Protection | Guangdong Tianhe vs. GreenTech Environmental Co | Guangdong Tianhe vs. Zoy Home Furnishing | Guangdong Tianhe vs. Fujian Nanwang Environment |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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