Correlation Between Hoshine Silicon and Zhongtong Guomai
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By analyzing existing cross correlation between Hoshine Silicon Ind and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Hoshine Silicon and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Zhongtong Guomai.
Diversification Opportunities for Hoshine Silicon and Zhongtong Guomai
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hoshine and Zhongtong is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Zhongtong Guomai
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 0.4 times more return on investment than Zhongtong Guomai. However, Hoshine Silicon Ind is 2.51 times less risky than Zhongtong Guomai. It trades about -0.08 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about -0.21 per unit of risk. If you would invest 6,225 in Hoshine Silicon Ind on September 13, 2024 and sell it today you would lose (175.00) from holding Hoshine Silicon Ind or give up 2.81% 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. Zhongtong Guomai Communication
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Zhongtong Guomai Com |
Hoshine Silicon and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Zhongtong Guomai
The main advantage of trading using opposite Hoshine Silicon and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Hoshine Silicon vs. Xinxiang Chemical Fiber | Hoshine Silicon vs. Sinofibers Technology Co | Hoshine Silicon vs. Daoming OpticsChemical Co | Hoshine Silicon vs. HeBei Jinniu Chemical |
| Zhongtong Guomai vs. China Petroleum Chemical | Zhongtong Guomai vs. PetroChina Co Ltd | Zhongtong Guomai vs. China State Construction | Zhongtong Guomai vs. China Railway Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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