Correlation Between Hoshine Silicon and Shenzhen Bioeasy
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By analyzing existing cross correlation between Hoshine Silicon Ind and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on Hoshine Silicon and Shenzhen Bioeasy 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 Shenzhen Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Shenzhen Bioeasy.
Diversification Opportunities for Hoshine Silicon and Shenzhen Bioeasy
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Shenzhen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy Bio 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 Shenzhen Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Shenzhen Bioeasy
Assuming the 90 days trading horizon Hoshine Silicon is expected to generate 34.8 times less return on investment than Shenzhen Bioeasy. But when comparing it to its historical volatility, Hoshine Silicon Ind is 3.21 times less risky than Shenzhen Bioeasy. It trades about 0.01 of its potential returns per unit of risk. Shenzhen Bioeasy Biotechnology is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 861.00 in Shenzhen Bioeasy Biotechnology on September 1, 2024 and sell it today you would earn a total of 127.00 from holding Shenzhen Bioeasy Biotechnology or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Shenzhen Bioeasy Biotechnology
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Shenzhen Bioeasy Bio |
Hoshine Silicon and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Shenzhen Bioeasy
The main advantage of trading using opposite Hoshine Silicon and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Shenzhen Bioeasy 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 Shenzhen Bioeasy will offset losses from the drop in Shenzhen Bioeasy'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 |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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