Correlation Between Hoshine Silicon and Puyang Huicheng
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By analyzing existing cross correlation between Hoshine Silicon Ind and Puyang Huicheng Electronic, you can compare the effects of market volatilities on Hoshine Silicon and Puyang Huicheng 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 Puyang Huicheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Puyang Huicheng.
Diversification Opportunities for Hoshine Silicon and Puyang Huicheng
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hoshine and Puyang is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Puyang Huicheng Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puyang Huicheng Elec 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 Puyang Huicheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puyang Huicheng Elec has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Puyang Huicheng go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Puyang Huicheng
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the Puyang Huicheng. But the stock apears to be less risky and, when comparing its historical volatility, Hoshine Silicon Ind is 1.77 times less risky than Puyang Huicheng. The stock trades about -0.44 of its potential returns per unit of risk. The Puyang Huicheng Electronic is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest 1,614 in Puyang Huicheng Electronic on October 23, 2024 and sell it today you would lose (148.00) from holding Puyang Huicheng Electronic or give up 9.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Puyang Huicheng Electronic
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Puyang Huicheng Elec |
Hoshine Silicon and Puyang Huicheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Puyang Huicheng
The main advantage of trading using opposite Hoshine Silicon and Puyang Huicheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Puyang Huicheng 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 Puyang Huicheng will offset losses from the drop in Puyang Huicheng's long position.| Hoshine Silicon vs. Hangzhou Arcvideo Technology | Hoshine Silicon vs. Shenzhen Noposion Agrochemicals | Hoshine Silicon vs. Miracll Chemicals Co | Hoshine Silicon vs. Changchun BCHT Biotechnology |
| Puyang Huicheng vs. Zijin Mining Group | Puyang Huicheng vs. Wanhua Chemical Group | Puyang Huicheng vs. Baoshan Iron Steel | Puyang Huicheng 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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