Correlation Between Beijing YanDong and Hoshine Silicon
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By analyzing existing cross correlation between Beijing YanDong MicroElectronic and Hoshine Silicon Ind, you can compare the effects of market volatilities on Beijing YanDong 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 Beijing YanDong with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing YanDong and Hoshine Silicon.
Diversification Opportunities for Beijing YanDong and Hoshine Silicon
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Hoshine is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Beijing YanDong MicroElectroni 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 Beijing YanDong 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 Beijing YanDong MicroElectronic 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 Beijing YanDong i.e., Beijing YanDong and Hoshine Silicon go up and down completely randomly.
Pair Corralation between Beijing YanDong and Hoshine Silicon
Assuming the 90 days trading horizon Beijing YanDong MicroElectronic is expected to generate 1.48 times more return on investment than Hoshine Silicon. However, Beijing YanDong is 1.48 times more volatile than Hoshine Silicon Ind. It trades about 0.01 of its potential returns per unit of risk. Hoshine Silicon Ind is currently generating about -0.04 per unit of risk. If you would invest 2,105 in Beijing YanDong MicroElectronic on October 16, 2024 and sell it today you would lose (115.00) from holding Beijing YanDong MicroElectronic or give up 5.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing YanDong MicroElectroni vs. Hoshine Silicon Ind
Performance |
| Timeline |
| Beijing YanDong Micr |
| Hoshine Silicon Ind |
Beijing YanDong and Hoshine Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing YanDong and Hoshine Silicon
The main advantage of trading using opposite Beijing YanDong and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing YanDong 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.| Beijing YanDong vs. Shanghai Yaoji Playing | Beijing YanDong vs. Beijing Sanyuan Foods | Beijing YanDong vs. Xiamen Jihong Package | Beijing YanDong vs. Ningbo MedicalSystem Biotechnology |
| Hoshine Silicon vs. Beijing YanDong MicroElectronic | Hoshine Silicon vs. Duzhe Publishing Media | Hoshine Silicon vs. Hengdian Entertainment Co | Hoshine Silicon vs. Guangdong Jinma Entertainment |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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