Correlation Between Hoshine Silicon and Shanghai Shuixing
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By analyzing existing cross correlation between Hoshine Silicon Ind and Shanghai Shuixing Home, you can compare the effects of market volatilities on Hoshine Silicon and Shanghai Shuixing 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 Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Shanghai Shuixing.
Diversification Opportunities for Hoshine Silicon and Shanghai Shuixing
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hoshine and Shanghai is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Shanghai Shuixing
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 0.4 times more return on investment than Shanghai Shuixing. However, Hoshine Silicon Ind is 2.48 times less risky than Shanghai Shuixing. It trades about 0.02 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.01 per unit of risk. If you would invest 5,739 in Hoshine Silicon Ind on September 27, 2024 and sell it today you would earn a total of 28.00 from holding Hoshine Silicon Ind or generate 0.49% 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. Shanghai Shuixing Home
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Shanghai Shuixing Home |
Hoshine Silicon and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Shanghai Shuixing
The main advantage of trading using opposite Hoshine Silicon and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Shanghai Shuixing 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 Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Hoshine Silicon vs. Zijin Mining Group | Hoshine Silicon vs. Wanhua Chemical Group | Hoshine Silicon vs. Baoshan Iron Steel | Hoshine Silicon vs. Shandong Gold Mining |
| Shanghai Shuixing vs. Aerospace Hi Tech Holding | Shanghai Shuixing vs. Sinomach General Machinery | Shanghai Shuixing vs. Shantui Construction Machinery | Shanghai Shuixing vs. Zhejiang JIULI Hi tech |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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