Correlation Between Hoshine Silicon and Kangxin New
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By analyzing existing cross correlation between Hoshine Silicon Ind and Kangxin New Materials, you can compare the effects of market volatilities on Hoshine Silicon and Kangxin 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 Kangxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Kangxin New.
Diversification Opportunities for Hoshine Silicon and Kangxin New
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hoshine and Kangxin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Kangxin New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangxin New Materials 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 Kangxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangxin New Materials has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Kangxin New go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Kangxin New
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the Kangxin New. But the stock apears to be less risky and, when comparing its historical volatility, Hoshine Silicon Ind is 1.92 times less risky than Kangxin New. The stock trades about -0.19 of its potential returns per unit of risk. The Kangxin New Materials is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 217.00 in Kangxin New Materials on August 28, 2024 and sell it today you would earn a total of 29.00 from holding Kangxin New Materials or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Kangxin New Materials
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Kangxin New Materials |
Hoshine Silicon and Kangxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Kangxin New
The main advantage of trading using opposite Hoshine Silicon and Kangxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Kangxin 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 Kangxin New will offset losses from the drop in Kangxin New's long position.| Hoshine Silicon vs. Air China Ltd | Hoshine Silicon vs. Bangyan Technology Co | Hoshine Silicon vs. Ningbo Fangzheng Automobile | Hoshine Silicon vs. Zhongshan Public Utilities |
| Kangxin New vs. Zijin Mining Group | Kangxin New vs. Wanhua Chemical Group | Kangxin New vs. Baoshan Iron Steel | Kangxin New 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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