Correlation Between Hoshine Silicon and Cathay Biotech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hoshine Silicon Ind and Cathay Biotech, you can compare the effects of market volatilities on Hoshine Silicon and Cathay Biotech 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 Cathay Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Cathay Biotech.
Diversification Opportunities for Hoshine Silicon and Cathay Biotech
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Cathay is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Cathay Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Biotech 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 Cathay Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Biotech has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Cathay Biotech go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Cathay Biotech
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 0.9 times more return on investment than Cathay Biotech. However, Hoshine Silicon Ind is 1.12 times less risky than Cathay Biotech. It trades about 0.06 of its potential returns per unit of risk. Cathay Biotech is currently generating about -0.01 per unit of risk. If you would invest 4,588 in Hoshine Silicon Ind on September 14, 2024 and sell it today you would earn a total of 1,456 from holding Hoshine Silicon Ind or generate 31.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Cathay Biotech
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Cathay Biotech |
Hoshine Silicon and Cathay Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Cathay Biotech
The main advantage of trading using opposite Hoshine Silicon and Cathay Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Cathay Biotech 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 Cathay Biotech will offset losses from the drop in Cathay Biotech'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 |
| Cathay Biotech vs. Suofeiya Home Collection | Cathay Biotech vs. Meinian Onehealth Healthcare | Cathay Biotech vs. Dezhan HealthCare Co | Cathay Biotech vs. PKU HealthCare Corp |
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.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |