Correlation Between Hoshine Silicon and Weihai Guangwei
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By analyzing existing cross correlation between Hoshine Silicon Ind and Weihai Guangwei Composites, you can compare the effects of market volatilities on Hoshine Silicon and Weihai Guangwei 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 Weihai Guangwei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Weihai Guangwei.
Diversification Opportunities for Hoshine Silicon and Weihai Guangwei
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hoshine and Weihai is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Weihai Guangwei Composites in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Guangwei Comp 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 Weihai Guangwei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Guangwei Comp has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Weihai Guangwei go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Weihai Guangwei
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 0.54 times more return on investment than Weihai Guangwei. However, Hoshine Silicon Ind is 1.85 times less risky than Weihai Guangwei. It trades about 0.01 of its potential returns per unit of risk. Weihai Guangwei Composites is currently generating about 0.0 per unit of risk. If you would invest 5,901 in Hoshine Silicon Ind on September 1, 2024 and sell it today you would earn a total of 9.00 from holding Hoshine Silicon Ind or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Weihai Guangwei Composites
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Weihai Guangwei Comp |
Hoshine Silicon and Weihai Guangwei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Weihai Guangwei
The main advantage of trading using opposite Hoshine Silicon and Weihai Guangwei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Weihai Guangwei 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 Weihai Guangwei will offset losses from the drop in Weihai Guangwei'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 |
| Weihai Guangwei vs. Xizi Clean Energy | Weihai Guangwei vs. Northern United Publishing | Weihai Guangwei vs. Keda Clean Energy | Weihai Guangwei vs. Beijing HuaYuanYiTong Thermal |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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