Correlation Between Hoshine Silicon and GRIPM Advanced
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By analyzing existing cross correlation between Hoshine Silicon Ind and GRIPM Advanced Materials, you can compare the effects of market volatilities on Hoshine Silicon and GRIPM 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 GRIPM Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and GRIPM Advanced.
Diversification Opportunities for Hoshine Silicon and GRIPM Advanced
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and GRIPM is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and GRIPM Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIPM Advanced Materials 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 GRIPM Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIPM Advanced Materials has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and GRIPM Advanced go up and down completely randomly.
Pair Corralation between Hoshine Silicon and GRIPM Advanced
Assuming the 90 days trading horizon Hoshine Silicon is expected to generate 22.43 times less return on investment than GRIPM Advanced. But when comparing it to its historical volatility, Hoshine Silicon Ind is 1.59 times less risky than GRIPM Advanced. It trades about 0.01 of its potential returns per unit of risk. GRIPM Advanced Materials is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,964 in GRIPM Advanced Materials on September 1, 2024 and sell it today you would earn a total of 316.00 from holding GRIPM Advanced Materials or generate 10.66% 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. GRIPM Advanced Materials
Performance |
| Timeline |
| Hoshine Silicon Ind |
| GRIPM Advanced Materials |
Hoshine Silicon and GRIPM Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and GRIPM Advanced
The main advantage of trading using opposite Hoshine Silicon and GRIPM Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, GRIPM 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 GRIPM Advanced will offset losses from the drop in GRIPM 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 |
| GRIPM Advanced vs. Chongqing Shunbo Aluminum | GRIPM Advanced vs. ZYF Lopsking Aluminum | GRIPM Advanced vs. Guangzhou Tinci Materials | GRIPM Advanced vs. Chahua Modern Housewares |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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