Correlation Between Hoshine Silicon and Levima Advanced
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hoshine Silicon Ind and Levima Advanced Materials, you can compare the effects of market volatilities on Hoshine Silicon and Levima Advanced 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 Levima Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Levima Advanced.
Diversification Opportunities for Hoshine Silicon and Levima Advanced
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hoshine and Levima is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Levima Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Levima Advanced Materials 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 Levima Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Levima Advanced Materials has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Levima Advanced go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Levima Advanced
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 0.88 times more return on investment than Levima Advanced. However, Hoshine Silicon Ind is 1.13 times less risky than Levima Advanced. It trades about 0.01 of its potential returns per unit of risk. Levima Advanced Materials is currently generating about -0.01 per unit of risk. If you would invest 5,890 in Hoshine Silicon Ind on September 4, 2024 and sell it today you would earn a total of 78.00 from holding Hoshine Silicon Ind or generate 1.32% 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. Levima Advanced Materials
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Levima Advanced Materials |
Hoshine Silicon and Levima Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Levima Advanced
The main advantage of trading using opposite Hoshine Silicon and Levima Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Levima Advanced 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 Levima Advanced will offset losses from the drop in Levima Advanced's long position.| Hoshine Silicon vs. Xingguang Agricultural Mach | Hoshine Silicon vs. Long Yuan Construction | Hoshine Silicon vs. Jiangsu Yanghe Brewery | Hoshine Silicon vs. Ningxia Younglight Chemicals |
| Levima Advanced vs. Zijin Mining Group | Levima Advanced vs. Wanhua Chemical Group | Levima Advanced vs. Baoshan Iron Steel | Levima Advanced vs. Shandong Gold 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |