Correlation Between Hoshine Silicon and Shandong Sinocera
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By analyzing existing cross correlation between Hoshine Silicon Ind and Shandong Sinocera Func, you can compare the effects of market volatilities on Hoshine Silicon and Shandong Sinocera 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 Shandong Sinocera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Shandong Sinocera.
Diversification Opportunities for Hoshine Silicon and Shandong Sinocera
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Shandong is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Shandong Sinocera Func in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinocera Func 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 Shandong Sinocera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinocera Func has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Shandong Sinocera go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Shandong Sinocera
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 0.87 times more return on investment than Shandong Sinocera. However, Hoshine Silicon Ind is 1.16 times less risky than Shandong Sinocera. It trades about 0.04 of its potential returns per unit of risk. Shandong Sinocera Func is currently generating about -0.03 per unit of risk. If you would invest 4,920 in Hoshine Silicon Ind on August 29, 2024 and sell it today you would earn a total of 819.00 from holding Hoshine Silicon Ind or generate 16.65% 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. Shandong Sinocera Func
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Shandong Sinocera Func |
Hoshine Silicon and Shandong Sinocera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Shandong Sinocera
The main advantage of trading using opposite Hoshine Silicon and Shandong Sinocera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Shandong Sinocera 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 Shandong Sinocera will offset losses from the drop in Shandong Sinocera's long position.| Hoshine Silicon vs. Air China Ltd | Hoshine Silicon vs. Bangyan Technology Co | Hoshine Silicon vs. Ningbo Fangzheng Automobile | Hoshine Silicon vs. Zhongshan Public Utilities |
| Shandong Sinocera vs. Zijin Mining Group | Shandong Sinocera vs. Baoshan Iron Steel | Shandong Sinocera vs. Shandong Gold Mining | Shandong Sinocera vs. Rongsheng Petrochemical Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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