Correlation Between Hoshine Silicon and Fujian Nanwang
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By analyzing existing cross correlation between Hoshine Silicon Ind and Fujian Nanwang Environment, you can compare the effects of market volatilities on Hoshine Silicon and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Fujian Nanwang.
Diversification Opportunities for Hoshine Silicon and Fujian Nanwang
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hoshine and Fujian is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Fujian Nanwang
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 0.36 times more return on investment than Fujian Nanwang. However, Hoshine Silicon Ind is 2.75 times less risky than Fujian Nanwang. It trades about -0.34 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about -0.24 per unit of risk. If you would invest 5,601 in Hoshine Silicon Ind on October 29, 2024 and sell it today you would lose (414.00) from holding Hoshine Silicon Ind or give up 7.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Fujian Nanwang Envir |
Hoshine Silicon and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Fujian Nanwang
The main advantage of trading using opposite Hoshine Silicon and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| Hoshine Silicon vs. Shenyang Huitian Thermal | Hoshine Silicon vs. Weihai Honglin Electronic | Hoshine Silicon vs. Techshine Electronics Co | Hoshine Silicon vs. Uroica Mining Safety |
| Fujian Nanwang vs. Kuang Chi Technologies | Fujian Nanwang vs. Jinhe Biotechnology Co | Fujian Nanwang vs. Kangping Technology Co | Fujian Nanwang vs. Montage Technology 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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