Correlation Between Hoshine Silicon and Xian Sunresin
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By analyzing existing cross correlation between Hoshine Silicon Ind and Xian Sunresin New, you can compare the effects of market volatilities on Hoshine Silicon and Xian Sunresin 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 Xian Sunresin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Xian Sunresin.
Diversification Opportunities for Hoshine Silicon and Xian Sunresin
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Xian is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Xian Sunresin New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian Sunresin New 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 Xian Sunresin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian Sunresin New has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Xian Sunresin go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Xian Sunresin
Assuming the 90 days trading horizon Hoshine Silicon is expected to generate 25.47 times less return on investment than Xian Sunresin. But when comparing it to its historical volatility, Hoshine Silicon Ind is 1.5 times less risky than Xian Sunresin. It trades about 0.01 of its potential returns per unit of risk. Xian Sunresin New is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 4,890 in Xian Sunresin New on September 1, 2024 and sell it today you would earn a total of 637.00 from holding Xian Sunresin New or generate 13.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Xian Sunresin New
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Xian Sunresin New |
Hoshine Silicon and Xian Sunresin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Xian Sunresin
The main advantage of trading using opposite Hoshine Silicon and Xian Sunresin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Xian Sunresin 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 Xian Sunresin will offset losses from the drop in Xian Sunresin's long position.| Hoshine Silicon vs. Shenzhen Bioeasy Biotechnology | Hoshine Silicon vs. Suofeiya Home Collection | Hoshine Silicon vs. Xiamen Goldenhome Co | Hoshine Silicon vs. Shandong Polymer Biochemicals |
| Xian Sunresin vs. Heilongjiang Transport Development | Xian Sunresin vs. China Aluminum International | Xian Sunresin vs. Tianshan Aluminum Group | Xian Sunresin vs. Aluminum Corp of |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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