Correlation Between Hoshine Silicon and Orinko Advanced
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By analyzing existing cross correlation between Hoshine Silicon Ind and Orinko Advanced Plastics, you can compare the effects of market volatilities on Hoshine Silicon and Orinko Advanced 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 Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Orinko Advanced.
Diversification Opportunities for Hoshine Silicon and Orinko Advanced
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hoshine and Orinko is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Orinko Advanced Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orinko Advanced Plastics 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 Orinko Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orinko Advanced Plastics has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Orinko Advanced go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Orinko Advanced
Assuming the 90 days trading horizon Hoshine Silicon is expected to generate 6.25 times less return on investment than Orinko Advanced. But when comparing it to its historical volatility, Hoshine Silicon Ind is 1.3 times less risky than Orinko Advanced. It trades about 0.01 of its potential returns per unit of risk. Orinko Advanced Plastics is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 913.00 in Orinko Advanced Plastics on September 1, 2024 and sell it today you would earn a total of 23.00 from holding Orinko Advanced Plastics or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoshine Silicon Ind vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Orinko Advanced Plastics |
Hoshine Silicon and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Orinko Advanced
The main advantage of trading using opposite Hoshine Silicon and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Orinko Advanced 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 Orinko Advanced will offset losses from the drop in Orinko Advanced's long position.| Hoshine Silicon vs. Shenzhen Bioeasy Biotechnology | Hoshine Silicon vs. Suofeiya Home Collection | Hoshine Silicon vs. Xiamen Goldenhome Co | Hoshine Silicon vs. Shandong Polymer Biochemicals |
| Orinko Advanced vs. Sinomach General Machinery | Orinko Advanced vs. Xinjiang Communications Construction | Orinko Advanced vs. Jilin Jlu Communication | Orinko Advanced vs. Anhui Huilong Agricultural |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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