Correlation Between Tengda Construction and Hoshine Silicon
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By analyzing existing cross correlation between Tengda Construction Group and Hoshine Silicon Ind, you can compare the effects of market volatilities on Tengda Construction 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 Tengda Construction with a short position of Hoshine Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tengda Construction and Hoshine Silicon.
Diversification Opportunities for Tengda Construction and Hoshine Silicon
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tengda and Hoshine is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Tengda Construction Group 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 Tengda Construction 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 Tengda Construction Group 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 Tengda Construction i.e., Tengda Construction and Hoshine Silicon go up and down completely randomly.
Pair Corralation between Tengda Construction and Hoshine Silicon
Assuming the 90 days trading horizon Tengda Construction Group is expected to generate 0.83 times more return on investment than Hoshine Silicon. However, Tengda Construction Group is 1.2 times less risky than Hoshine Silicon. It trades about -0.01 of its potential returns per unit of risk. Hoshine Silicon Ind is currently generating about -0.07 per unit of risk. If you would invest 240.00 in Tengda Construction Group on October 5, 2024 and sell it today you would lose (8.00) from holding Tengda Construction Group or give up 3.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tengda Construction Group vs. Hoshine Silicon Ind
Performance |
Timeline |
Tengda Construction |
Hoshine Silicon Ind |
Tengda Construction and Hoshine Silicon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tengda Construction and Hoshine Silicon
The main advantage of trading using opposite Tengda Construction and Hoshine Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tengda Construction 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.Tengda Construction vs. Industrial and Commercial | ||
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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