Correlation Between Hoshine Silicon and Chongqing Road
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By analyzing existing cross correlation between Hoshine Silicon Ind and Chongqing Road Bridge, you can compare the effects of market volatilities on Hoshine Silicon and Chongqing Road 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 Chongqing Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Chongqing Road.
Diversification Opportunities for Hoshine Silicon and Chongqing Road
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hoshine and Chongqing is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Chongqing Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Road Bridge 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 Chongqing Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Road Bridge has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Chongqing Road go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Chongqing Road
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the Chongqing Road. But the stock apears to be less risky and, when comparing its historical volatility, Hoshine Silicon Ind is 1.76 times less risky than Chongqing Road. The stock trades about -0.43 of its potential returns per unit of risk. The Chongqing Road Bridge is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 584.00 in Chongqing Road Bridge on October 22, 2024 and sell it today you would lose (46.00) from holding Chongqing Road Bridge or give up 7.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Chongqing Road Bridge
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Chongqing Road Bridge |
Hoshine Silicon and Chongqing Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Chongqing Road
The main advantage of trading using opposite Hoshine Silicon and Chongqing Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Chongqing Road 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 Chongqing Road will offset losses from the drop in Chongqing Road's long position.| Hoshine Silicon vs. Hainan Haiqi Transportation | Hoshine Silicon vs. Hunan TV Broadcast | Hoshine Silicon vs. Sichuan Fulin Transportation | Hoshine Silicon vs. Shanghai Yanpu Metal |
| Chongqing Road vs. Jinsanjiang Silicon Material | Chongqing Road vs. Longxing Chemical Stock | Chongqing Road vs. Yangmei Chemical Co | Chongqing Road vs. Hoshine Silicon Ind |
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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