Correlation Between Hoshine Silicon and Qingdao Choho
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By analyzing existing cross correlation between Hoshine Silicon Ind and Qingdao Choho Industrial, you can compare the effects of market volatilities on Hoshine Silicon and Qingdao Choho 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 Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Qingdao Choho.
Diversification Opportunities for Hoshine Silicon and Qingdao Choho
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hoshine and Qingdao is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho 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 Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Qingdao Choho go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Qingdao Choho
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the Qingdao Choho. But the stock apears to be less risky and, when comparing its historical volatility, Hoshine Silicon Ind is 1.05 times less risky than Qingdao Choho. The stock trades about -0.02 of its potential returns per unit of risk. The Qingdao Choho Industrial is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,424 in Qingdao Choho Industrial on October 15, 2024 and sell it today you would earn a total of 138.00 from holding Qingdao Choho Industrial or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Qingdao Choho Industrial
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Qingdao Choho Industrial |
Hoshine Silicon and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Qingdao Choho
The main advantage of trading using opposite Hoshine Silicon and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Qingdao Choho 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 Qingdao Choho will offset losses from the drop in Qingdao Choho'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 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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