Correlation Between Xingguang Agricultural and Hoshine Silicon
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By analyzing existing cross correlation between Xingguang Agricultural Mach and Hoshine Silicon Ind, you can compare the effects of market volatilities on Xingguang Agricultural 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 Xingguang Agricultural with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xingguang Agricultural and Hoshine Silicon.
Diversification Opportunities for Xingguang Agricultural and Hoshine Silicon
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xingguang and Hoshine is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Xingguang Agricultural Mach 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 Xingguang Agricultural 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 Xingguang Agricultural Mach 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 Xingguang Agricultural i.e., Xingguang Agricultural and Hoshine Silicon go up and down completely randomly.
Pair Corralation between Xingguang Agricultural and Hoshine Silicon
Assuming the 90 days trading horizon Xingguang Agricultural is expected to generate 1.08 times less return on investment than Hoshine Silicon. In addition to that, Xingguang Agricultural is 1.62 times more volatile than Hoshine Silicon Ind. It trades about 0.03 of its total potential returns per unit of risk. Hoshine Silicon Ind is currently generating about 0.05 per unit of volatility. If you would invest 4,840 in Hoshine Silicon Ind on September 4, 2024 and sell it today you would earn a total of 1,129 from holding Hoshine Silicon Ind or generate 23.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xingguang Agricultural Mach vs. Hoshine Silicon Ind
Performance |
| Timeline |
| Xingguang Agricultural |
| Hoshine Silicon Ind |
Xingguang Agricultural and Hoshine Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xingguang Agricultural and Hoshine Silicon
The main advantage of trading using opposite Xingguang Agricultural and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xingguang Agricultural 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.| Xingguang Agricultural vs. Industrial and Commercial | Xingguang Agricultural vs. Agricultural Bank of | Xingguang Agricultural vs. China Construction Bank | Xingguang Agricultural vs. Bank of China |
| Hoshine Silicon vs. Xingguang Agricultural Mach | Hoshine Silicon vs. Long Yuan Construction | Hoshine Silicon vs. Jiangsu Yanghe Brewery | Hoshine Silicon vs. Ningxia Younglight Chemicals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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