Correlation Between Shanghai Shuixing and Hoshine Silicon
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By analyzing existing cross correlation between Shanghai Shuixing Home and Hoshine Silicon Ind, you can compare the effects of market volatilities on Shanghai Shuixing and Hoshine Silicon 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 Shanghai Shuixing with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Hoshine Silicon.
Diversification Opportunities for Shanghai Shuixing and Hoshine Silicon
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Hoshine is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and Hoshine Silicon Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoshine Silicon Ind and Shanghai Shuixing 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 Shanghai Shuixing Home are associated (or correlated) with Hoshine Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoshine Silicon Ind has no effect on the direction of Shanghai Shuixing i.e., Shanghai Shuixing and Hoshine Silicon go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Hoshine Silicon
Assuming the 90 days trading horizon Shanghai Shuixing is expected to generate 1.53 times less return on investment than Hoshine Silicon. In addition to that, Shanghai Shuixing is 2.48 times more volatile than Hoshine Silicon Ind. It trades about 0.01 of its total potential returns per unit of risk. Hoshine Silicon Ind is currently generating about 0.02 per unit of volatility. If you would invest 5,739 in Hoshine Silicon Ind on September 27, 2024 and sell it today you would earn a total of 28.00 from holding Hoshine Silicon Ind or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Hoshine Silicon Ind
Performance |
| Timeline |
| Shanghai Shuixing Home |
| Hoshine Silicon Ind |
Shanghai Shuixing and Hoshine Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Hoshine Silicon
The main advantage of trading using opposite Shanghai Shuixing and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing position performs unexpectedly, Hoshine Silicon 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 Hoshine Silicon will offset losses from the drop in Hoshine Silicon's long position.| Shanghai Shuixing vs. Aerospace Hi Tech Holding | Shanghai Shuixing vs. Sinomach General Machinery | Shanghai Shuixing vs. Shantui Construction Machinery | Shanghai Shuixing vs. Zhejiang JIULI Hi tech |
| Hoshine Silicon vs. Zijin Mining Group | Hoshine Silicon vs. Wanhua Chemical Group | Hoshine Silicon vs. Baoshan Iron Steel | Hoshine Silicon vs. Shandong Gold Mining |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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