Correlation Between Hoshine Silicon and Pengxin International
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By analyzing existing cross correlation between Hoshine Silicon Ind and Pengxin International Mining, you can compare the effects of market volatilities on Hoshine Silicon and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Pengxin International.
Diversification Opportunities for Hoshine Silicon and Pengxin International
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Pengxin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Pengxin International go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Pengxin International
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the Pengxin International. But the stock apears to be less risky and, when comparing its historical volatility, Hoshine Silicon Ind is 1.28 times less risky than Pengxin International. The stock trades about -0.01 of its potential returns per unit of risk. The Pengxin International Mining is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 322.00 in Pengxin International Mining on August 31, 2024 and sell it today you would lose (6.00) from holding Pengxin International Mining or give up 1.86% 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. Pengxin International Mining
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Pengxin International |
Hoshine Silicon and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Pengxin International
The main advantage of trading using opposite Hoshine Silicon and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Hoshine Silicon vs. ROPEOK Technology Group | Hoshine Silicon vs. Maxvision Technology Corp | Hoshine Silicon vs. Soyea Technology Co | Hoshine Silicon vs. Holitech 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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