Correlation Between Zhejiang Huayou and Hoshine Silicon
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By analyzing existing cross correlation between Zhejiang Huayou Cobalt and Hoshine Silicon Ind, you can compare the effects of market volatilities on Zhejiang Huayou 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 Zhejiang Huayou with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Huayou and Hoshine Silicon.
Diversification Opportunities for Zhejiang Huayou and Hoshine Silicon
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Hoshine is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Huayou Cobalt 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 Zhejiang Huayou 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 Zhejiang Huayou Cobalt 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 Zhejiang Huayou i.e., Zhejiang Huayou and Hoshine Silicon go up and down completely randomly.
Pair Corralation between Zhejiang Huayou and Hoshine Silicon
Assuming the 90 days trading horizon Zhejiang Huayou Cobalt is expected to generate 1.32 times more return on investment than Hoshine Silicon. However, Zhejiang Huayou is 1.32 times more volatile than Hoshine Silicon Ind. It trades about -0.15 of its potential returns per unit of risk. Hoshine Silicon Ind is currently generating about -0.26 per unit of risk. If you would invest 3,234 in Zhejiang Huayou Cobalt on October 30, 2024 and sell it today you would lose (312.00) from holding Zhejiang Huayou Cobalt or give up 9.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Huayou Cobalt vs. Hoshine Silicon Ind
Performance |
| Timeline |
| Zhejiang Huayou Cobalt |
| Hoshine Silicon Ind |
Zhejiang Huayou and Hoshine Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Huayou and Hoshine Silicon
The main advantage of trading using opposite Zhejiang Huayou and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Huayou 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.| Zhejiang Huayou vs. Zijin Mining Group | Zhejiang Huayou vs. Wanhua Chemical Group | Zhejiang Huayou vs. Baoshan Iron Steel | Zhejiang Huayou vs. Shandong Gold Mining |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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