Correlation Between Hoshine Silicon and Shaanxi Lighte
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By analyzing existing cross correlation between Hoshine Silicon Ind and Shaanxi Lighte Optoelectronics, you can compare the effects of market volatilities on Hoshine Silicon and Shaanxi Lighte 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 Shaanxi Lighte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Shaanxi Lighte.
Diversification Opportunities for Hoshine Silicon and Shaanxi Lighte
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Shaanxi is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Shaanxi Lighte Optoelectronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Lighte Optoe 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 Shaanxi Lighte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Lighte Optoe has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Shaanxi Lighte go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Shaanxi Lighte
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 0.43 times more return on investment than Shaanxi Lighte. However, Hoshine Silicon Ind is 2.35 times less risky than Shaanxi Lighte. It trades about -0.18 of its potential returns per unit of risk. Shaanxi Lighte Optoelectronics is currently generating about -0.09 per unit of risk. If you would invest 5,383 in Hoshine Silicon Ind on November 4, 2024 and sell it today you would lose (189.00) from holding Hoshine Silicon Ind or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Shaanxi Lighte Optoelectronics
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Shaanxi Lighte Optoe |
Hoshine Silicon and Shaanxi Lighte Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Shaanxi Lighte
The main advantage of trading using opposite Hoshine Silicon and Shaanxi Lighte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Shaanxi Lighte 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 Shaanxi Lighte will offset losses from the drop in Shaanxi Lighte's long position.| Hoshine Silicon vs. Ningbo Fujia Industrial | Hoshine Silicon vs. Giantec Semiconductor Corp | Hoshine Silicon vs. JCHX Mining Management | Hoshine Silicon vs. StarPower Semiconductor |
| Shaanxi Lighte vs. Guangdong Qunxing Toys | Shaanxi Lighte vs. Biwin Storage Technology | Shaanxi Lighte vs. Invengo Information Technology | Shaanxi Lighte vs. Zhongfu Information |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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