Correlation Between Hoshine Silicon and Yingde Greatchem
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By analyzing existing cross correlation between Hoshine Silicon Ind and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Hoshine Silicon and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Yingde Greatchem.
Diversification Opportunities for Hoshine Silicon and Yingde Greatchem
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Yingde is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Yingde Greatchem
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 0.72 times more return on investment than Yingde Greatchem. However, Hoshine Silicon Ind is 1.39 times less risky than Yingde Greatchem. It trades about -0.03 of its potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about -0.02 per unit of risk. If you would invest 9,113 in Hoshine Silicon Ind on August 25, 2024 and sell it today you would lose (3,333) from holding Hoshine Silicon Ind or give up 36.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 71.97% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Yingde Greatchem Che |
Hoshine Silicon and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Yingde Greatchem
The main advantage of trading using opposite Hoshine Silicon and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem'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 |
| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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