Correlation Between Hoshine Silicon and Gome Telecom
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By analyzing existing cross correlation between Hoshine Silicon Ind and Gome Telecom Equipment, you can compare the effects of market volatilities on Hoshine Silicon and Gome Telecom 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 Gome Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Gome Telecom.
Diversification Opportunities for Hoshine Silicon and Gome Telecom
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hoshine and Gome is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Gome Telecom Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gome Telecom Equipment 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 Gome Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gome Telecom Equipment has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Gome Telecom go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Gome Telecom
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 0.71 times more return on investment than Gome Telecom. However, Hoshine Silicon Ind is 1.41 times less risky than Gome Telecom. It trades about -0.03 of its potential returns per unit of risk. Gome Telecom Equipment is currently generating about -0.06 per unit of risk. If you would invest 9,348 in Hoshine Silicon Ind on September 5, 2024 and sell it today you would lose (3,379) from holding Hoshine Silicon Ind or give up 36.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Gome Telecom Equipment
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Gome Telecom Equipment |
Hoshine Silicon and Gome Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Gome Telecom
The main advantage of trading using opposite Hoshine Silicon and Gome Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Gome Telecom 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 Gome Telecom will offset losses from the drop in Gome Telecom's long position.| Hoshine Silicon vs. Zijin Mining Group | Hoshine Silicon vs. Wanhua Chemical Group | Hoshine Silicon vs. Baoshan Iron Steel | Hoshine Silicon vs. Rongsheng Petrochemical Co |
| Gome Telecom vs. Guangzhou KingTeller Technology | Gome Telecom vs. Hoshine Silicon Ind | Gome Telecom vs. Kingsignal Technology Co | Gome Telecom vs. Kangping 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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