Correlation Between Hoshine Silicon and Jiangsu Financial
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By analyzing existing cross correlation between Hoshine Silicon Ind and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Hoshine Silicon and Jiangsu Financial 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 Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Jiangsu Financial.
Diversification Opportunities for Hoshine Silicon and Jiangsu Financial
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hoshine and Jiangsu is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Jiangsu Financial Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Financial Leasing 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 Jiangsu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Financial Leasing has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Jiangsu Financial
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 1.26 times more return on investment than Jiangsu Financial. However, Hoshine Silicon is 1.26 times more volatile than Jiangsu Financial Leasing. It trades about 0.11 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.08 per unit of risk. If you would invest 4,780 in Hoshine Silicon Ind on August 29, 2024 and sell it today you would earn a total of 959.00 from holding Hoshine Silicon Ind or generate 20.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Jiangsu Financial Leasing |
Hoshine Silicon and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Jiangsu Financial
The main advantage of trading using opposite Hoshine Silicon and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Jiangsu Financial 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 Jiangsu Financial will offset losses from the drop in Jiangsu Financial's long position.| Hoshine Silicon vs. Beijing Mainstreets Investment | Hoshine Silicon vs. RoadMain T Co | Hoshine Silicon vs. Shaanxi Broadcast TV | Hoshine Silicon vs. Vanfund Urban Investment |
| Jiangsu Financial vs. Kweichow Moutai Co | Jiangsu Financial vs. Contemporary Amperex Technology | Jiangsu Financial vs. G bits Network Technology | Jiangsu Financial vs. BYD Co Ltd |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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