Correlation Between Hoshine Silicon and Huaibei Mining
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By analyzing existing cross correlation between Hoshine Silicon Ind and Huaibei Mining Holdings, you can compare the effects of market volatilities on Hoshine Silicon and Huaibei Mining 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 Huaibei Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Huaibei Mining.
Diversification Opportunities for Hoshine Silicon and Huaibei Mining
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hoshine and Huaibei is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Huaibei Mining Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaibei Mining Holdings 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 Huaibei Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaibei Mining Holdings has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Huaibei Mining go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Huaibei Mining
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 1.13 times more return on investment than Huaibei Mining. However, Hoshine Silicon is 1.13 times more volatile than Huaibei Mining Holdings. It trades about 0.1 of its potential returns per unit of risk. Huaibei Mining Holdings is currently generating about 0.01 per unit of risk. If you would invest 5,080 in Hoshine Silicon Ind on September 2, 2024 and sell it today you would earn a total of 830.00 from holding Hoshine Silicon Ind or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Huaibei Mining Holdings
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Huaibei Mining Holdings |
Hoshine Silicon and Huaibei Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Huaibei Mining
The main advantage of trading using opposite Hoshine Silicon and Huaibei Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Huaibei Mining 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 Huaibei Mining will offset losses from the drop in Huaibei Mining's long position.| Hoshine Silicon vs. Mingchen Health Co | Hoshine Silicon vs. Dezhan HealthCare Co | Hoshine Silicon vs. Andon Health Co | Hoshine Silicon vs. Guangdong Shenglu Telecommunication |
| Huaibei Mining vs. Zijin Mining Group | Huaibei Mining vs. Baoshan Iron Steel | Huaibei Mining vs. Shandong Gold Mining | Huaibei Mining vs. Rongsheng Petrochemical 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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