Correlation Between Hoshine Silicon and Qinghai Salt
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By analyzing existing cross correlation between Hoshine Silicon Ind and Qinghai Salt Lake, you can compare the effects of market volatilities on Hoshine Silicon and Qinghai Salt 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 Hoshine Silicon with a short position of Qinghai Salt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Qinghai Salt.
Diversification Opportunities for Hoshine Silicon and Qinghai Salt
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hoshine and Qinghai is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Qinghai Salt Lake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghai Salt Lake and Hoshine Silicon 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 Hoshine Silicon Ind are associated (or correlated) with Qinghai Salt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghai Salt Lake has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Qinghai Salt go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Qinghai Salt
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 1.2 times more return on investment than Qinghai Salt. However, Hoshine Silicon is 1.2 times more volatile than Qinghai Salt Lake. It trades about 0.06 of its potential returns per unit of risk. Qinghai Salt Lake is currently generating about 0.0 per unit of risk. If you would invest 4,973 in Hoshine Silicon Ind on September 24, 2024 and sell it today you would earn a total of 1,027 from holding Hoshine Silicon Ind or generate 20.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Hoshine Silicon Ind vs. Qinghai Salt Lake
Performance |
Timeline |
Hoshine Silicon Ind |
Qinghai Salt Lake |
Hoshine Silicon and Qinghai Salt Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hoshine Silicon and Qinghai Salt
The main advantage of trading using opposite Hoshine Silicon and Qinghai Salt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Qinghai Salt 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 Qinghai Salt will offset losses from the drop in Qinghai Salt's long position.Hoshine Silicon vs. Zijin Mining Group | Hoshine Silicon vs. Wanhua Chemical Group | Hoshine Silicon vs. Baoshan Iron Steel | Hoshine Silicon vs. Shandong Gold Mining |
Qinghai Salt vs. Zijin Mining Group | Qinghai Salt vs. Wanhua Chemical Group | Qinghai Salt vs. Baoshan Iron Steel | Qinghai Salt 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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