Correlation Between Hoshine Silicon and Tianjin Ruixin
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By analyzing existing cross correlation between Hoshine Silicon Ind and Tianjin Ruixin Technology, you can compare the effects of market volatilities on Hoshine Silicon and Tianjin Ruixin 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 Tianjin Ruixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Tianjin Ruixin.
Diversification Opportunities for Hoshine Silicon and Tianjin Ruixin
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hoshine and Tianjin is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Tianjin Ruixin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Ruixin Technology 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 Tianjin Ruixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Ruixin Technology has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Tianjin Ruixin go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Tianjin Ruixin
Assuming the 90 days trading horizon Hoshine Silicon is expected to generate 2.53 times less return on investment than Tianjin Ruixin. But when comparing it to its historical volatility, Hoshine Silicon Ind is 1.49 times less risky than Tianjin Ruixin. It trades about 0.11 of its potential returns per unit of risk. Tianjin Ruixin Technology is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,083 in Tianjin Ruixin Technology on September 20, 2024 and sell it today you would earn a total of 627.00 from holding Tianjin Ruixin Technology or generate 57.89% 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. Tianjin Ruixin Technology
Performance |
Timeline |
Hoshine Silicon Ind |
Tianjin Ruixin Technology |
Hoshine Silicon and Tianjin Ruixin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hoshine Silicon and Tianjin Ruixin
The main advantage of trading using opposite Hoshine Silicon and Tianjin Ruixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Tianjin Ruixin 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 Tianjin Ruixin will offset losses from the drop in Tianjin Ruixin'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 |
Tianjin Ruixin vs. Zijin Mining Group | Tianjin Ruixin vs. Wanhua Chemical Group | Tianjin Ruixin vs. Baoshan Iron Steel | Tianjin Ruixin 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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