Correlation Between Hoshine Silicon and Sinomach General
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By analyzing existing cross correlation between Hoshine Silicon Ind and Sinomach General Machinery, you can compare the effects of market volatilities on Hoshine Silicon and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Sinomach General.
Diversification Opportunities for Hoshine Silicon and Sinomach General
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Sinomach is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Sinomach General go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Sinomach General
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the Sinomach General. But the stock apears to be less risky and, when comparing its historical volatility, Hoshine Silicon Ind is 2.14 times less risky than Sinomach General. The stock trades about -0.41 of its potential returns per unit of risk. The Sinomach General Machinery is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 1,670 in Sinomach General Machinery on October 17, 2024 and sell it today you would lose (173.00) from holding Sinomach General Machinery or give up 10.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Sinomach General Machinery
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Sinomach General Mac |
Hoshine Silicon and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Sinomach General
The main advantage of trading using opposite Hoshine Silicon and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General's long position.| Hoshine Silicon vs. ROPEOK Technology Group | Hoshine Silicon vs. Hubei Forbon Technology | Hoshine Silicon vs. Smartgiant Technology Co | Hoshine Silicon vs. Shanghai Jinfeng Wine |
| Sinomach General vs. Kuangda Technology Group | Sinomach General vs. Montage Technology Co | Sinomach General vs. Hoshine Silicon Ind | Sinomach General vs. Eyebright Medical Technology |
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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