Correlation Between Der International and Hoshine Silicon
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By analyzing existing cross correlation between Der International Home and Hoshine Silicon Ind, you can compare the effects of market volatilities on Der International 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 Der International with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Der International and Hoshine Silicon.
Diversification Opportunities for Der International and Hoshine Silicon
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Der and Hoshine is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Der International 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 Der International 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 Der International 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 Der International i.e., Der International and Hoshine Silicon go up and down completely randomly.
Pair Corralation between Der International and Hoshine Silicon
Assuming the 90 days trading horizon Der International Home is expected to generate 1.24 times more return on investment than Hoshine Silicon. However, Der International is 1.24 times more volatile than Hoshine Silicon Ind. It trades about 0.02 of its potential returns per unit of risk. Hoshine Silicon Ind is currently generating about -0.02 per unit of risk. If you would invest 547.00 in Der International Home on September 18, 2024 and sell it today you would earn a total of 17.00 from holding Der International Home or generate 3.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Der International Home vs. Hoshine Silicon Ind
Performance |
Timeline |
Der International Home |
Hoshine Silicon Ind |
Der International and Hoshine Silicon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Der International and Hoshine Silicon
The main advantage of trading using opposite Der International and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Der International 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.Der International vs. PetroChina Co Ltd | Der International vs. China Mobile Limited | Der International vs. CNOOC Limited | Der International vs. Ping An Insurance |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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