Correlation Between Hoshine Silicon and Zhejiang Longsheng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hoshine Silicon Ind and Zhejiang Longsheng Group, you can compare the effects of market volatilities on Hoshine Silicon and Zhejiang Longsheng 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 Zhejiang Longsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Zhejiang Longsheng.
Diversification Opportunities for Hoshine Silicon and Zhejiang Longsheng
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Zhejiang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Zhejiang Longsheng Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Longsheng 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 Zhejiang Longsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Longsheng has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Zhejiang Longsheng go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Zhejiang Longsheng
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 1.82 times more return on investment than Zhejiang Longsheng. However, Hoshine Silicon is 1.82 times more volatile than Zhejiang Longsheng Group. It trades about 0.11 of its potential returns per unit of risk. Zhejiang Longsheng Group is currently generating about 0.17 per unit of risk. If you would invest 4,966 in Hoshine Silicon Ind on September 23, 2024 and sell it today you would earn a total of 1,034 from holding Hoshine Silicon Ind or generate 20.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hoshine Silicon Ind vs. Zhejiang Longsheng Group
Performance |
Timeline |
Hoshine Silicon Ind |
Zhejiang Longsheng |
Hoshine Silicon and Zhejiang Longsheng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hoshine Silicon and Zhejiang Longsheng
The main advantage of trading using opposite Hoshine Silicon and Zhejiang Longsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Zhejiang Longsheng 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 Zhejiang Longsheng will offset losses from the drop in Zhejiang Longsheng'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 |
Zhejiang Longsheng vs. Zijin Mining Group | ||
Zhejiang Longsheng vs. Baoshan Iron Steel | ||
Zhejiang Longsheng vs. Shandong Gold Mining | ||
Zhejiang Longsheng vs. Rongsheng Petrochemical Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |