Correlation Between Hoshine Silicon and Hubei Dinglong
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By analyzing existing cross correlation between Hoshine Silicon Ind and Hubei Dinglong Chemical, you can compare the effects of market volatilities on Hoshine Silicon and Hubei Dinglong 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 Hubei Dinglong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Hubei Dinglong.
Diversification Opportunities for Hoshine Silicon and Hubei Dinglong
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Hubei is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Hubei Dinglong Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Dinglong Chemical 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 Hubei Dinglong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Dinglong Chemical has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Hubei Dinglong go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Hubei Dinglong
Assuming the 90 days trading horizon Hoshine Silicon is expected to generate 1.39 times less return on investment than Hubei Dinglong. But when comparing it to its historical volatility, Hoshine Silicon Ind is 1.02 times less risky than Hubei Dinglong. It trades about 0.05 of its potential returns per unit of risk. Hubei Dinglong Chemical is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,068 in Hubei Dinglong Chemical on August 25, 2024 and sell it today you would earn a total of 611.00 from holding Hubei Dinglong Chemical or generate 29.55% 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. Hubei Dinglong Chemical
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Hubei Dinglong Chemical |
Hoshine Silicon and Hubei Dinglong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Hubei Dinglong
The main advantage of trading using opposite Hoshine Silicon and Hubei Dinglong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Hubei Dinglong 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 Hubei Dinglong will offset losses from the drop in Hubei Dinglong'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 |
| Hubei Dinglong vs. Zijin Mining Group | Hubei Dinglong vs. Wanhua Chemical Group | Hubei Dinglong vs. Baoshan Iron Steel | Hubei Dinglong 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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