Correlation Between Hoshine Silicon and Zhejiang Huayou
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hoshine Silicon Ind and Zhejiang Huayou Cobalt, you can compare the effects of market volatilities on Hoshine Silicon and Zhejiang Huayou 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 Zhejiang Huayou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Zhejiang Huayou.
Diversification Opportunities for Hoshine Silicon and Zhejiang Huayou
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hoshine and Zhejiang is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Zhejiang Huayou Cobalt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huayou Cobalt 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 Zhejiang Huayou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huayou Cobalt has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Zhejiang Huayou go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Zhejiang Huayou
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 0.86 times more return on investment than Zhejiang Huayou. However, Hoshine Silicon Ind is 1.17 times less risky than Zhejiang Huayou. It trades about -0.04 of its potential returns per unit of risk. Zhejiang Huayou Cobalt is currently generating about -0.05 per unit of risk. If you would invest 9,195 in Hoshine Silicon Ind on October 16, 2024 and sell it today you would lose (4,080) from holding Hoshine Silicon Ind or give up 44.37% 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. Zhejiang Huayou Cobalt
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Zhejiang Huayou Cobalt |
Hoshine Silicon and Zhejiang Huayou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Zhejiang Huayou
The main advantage of trading using opposite Hoshine Silicon and Zhejiang Huayou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Zhejiang Huayou 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 Zhejiang Huayou will offset losses from the drop in Zhejiang Huayou's long position.| Hoshine Silicon vs. Beijing YanDong MicroElectronic | Hoshine Silicon vs. Duzhe Publishing Media | Hoshine Silicon vs. Hengdian Entertainment Co | Hoshine Silicon vs. Guangdong Jinma Entertainment |
| Zhejiang Huayou vs. Zijin Mining Group | Zhejiang Huayou vs. Wanhua Chemical Group | Zhejiang Huayou vs. Baoshan Iron Steel | Zhejiang Huayou vs. Shandong Gold Mining |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |