Correlation Between Hoshine Silicon and Shanghai Yaohua
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By analyzing existing cross correlation between Hoshine Silicon Ind and Shanghai Yaohua Pilkington, you can compare the effects of market volatilities on Hoshine Silicon and Shanghai Yaohua 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 Shanghai Yaohua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Shanghai Yaohua.
Diversification Opportunities for Hoshine Silicon and Shanghai Yaohua
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hoshine and Shanghai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Shanghai Yaohua Pilkington in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaohua Pilk 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 Shanghai Yaohua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaohua Pilk has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Shanghai Yaohua go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Shanghai Yaohua
Assuming the 90 days trading horizon Hoshine Silicon is expected to generate 2.75 times less return on investment than Shanghai Yaohua. But when comparing it to its historical volatility, Hoshine Silicon Ind is 1.99 times less risky than Shanghai Yaohua. It trades about 0.1 of its potential returns per unit of risk. Shanghai Yaohua Pilkington is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 33.00 in Shanghai Yaohua Pilkington on September 2, 2024 and sell it today you would earn a total of 3.00 from holding Shanghai Yaohua Pilkington or generate 9.09% 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. Shanghai Yaohua Pilkington
Performance |
| Timeline |
| Hoshine Silicon Ind |
| Shanghai Yaohua Pilk |
Hoshine Silicon and Shanghai Yaohua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoshine Silicon and Shanghai Yaohua
The main advantage of trading using opposite Hoshine Silicon and Shanghai Yaohua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Shanghai Yaohua 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 Shanghai Yaohua will offset losses from the drop in Shanghai Yaohua's long position.| Hoshine Silicon vs. Mingchen Health Co | Hoshine Silicon vs. Dezhan HealthCare Co | Hoshine Silicon vs. Andon Health Co | Hoshine Silicon vs. Guangdong Shenglu Telecommunication |
| Shanghai Yaohua vs. Shandong Hi Speed RoadBridge | Shanghai Yaohua vs. Broadex Technologies Co | Shanghai Yaohua vs. Hubeiyichang Transportation Group | Shanghai Yaohua vs. Zhejiang Construction Investment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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