Correlation Between Hoshine Silicon and Shengtak New
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By analyzing existing cross correlation between Hoshine Silicon Ind and Shengtak New Material, you can compare the effects of market volatilities on Hoshine Silicon and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Shengtak New.
Diversification Opportunities for Hoshine Silicon and Shengtak New
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hoshine and Shengtak is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Shengtak New go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Shengtak New
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the Shengtak New. But the stock apears to be less risky and, when comparing its historical volatility, Hoshine Silicon Ind is 1.59 times less risky than Shengtak New. The stock trades about -0.03 of its potential returns per unit of risk. The Shengtak New Material is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,271 in Shengtak New Material on September 28, 2024 and sell it today you would lose (114.00) from holding Shengtak New Material or give up 3.49% 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. Shengtak New Material
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Shengtak New Material |
Hoshine Silicon and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Shengtak New
The main advantage of trading using opposite Hoshine Silicon and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New'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 |
| Shengtak New vs. Peoples Insurance of | Shengtak New vs. Anhui Deli Household | Shengtak New vs. Harvest Fund Management | Shengtak New vs. Marssenger Kitchenware 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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