Correlation Between Hoshine Silicon and Sanxiang Advanced
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By analyzing existing cross correlation between Hoshine Silicon Ind and Sanxiang Advanced Materials, you can compare the effects of market volatilities on Hoshine Silicon and Sanxiang Advanced 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 Sanxiang Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Sanxiang Advanced.
Diversification Opportunities for Hoshine Silicon and Sanxiang Advanced
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Sanxiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Sanxiang Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanxiang Advanced 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 Sanxiang Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanxiang Advanced has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Sanxiang Advanced go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Sanxiang Advanced
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to generate 0.69 times more return on investment than Sanxiang Advanced. However, Hoshine Silicon Ind is 1.44 times less risky than Sanxiang Advanced. It trades about 0.06 of its potential returns per unit of risk. Sanxiang Advanced Materials 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 | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hoshine Silicon Ind vs. Sanxiang Advanced Materials
Performance |
Timeline |
Hoshine Silicon Ind |
Sanxiang Advanced |
Hoshine Silicon and Sanxiang Advanced Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hoshine Silicon and Sanxiang Advanced
The main advantage of trading using opposite Hoshine Silicon and Sanxiang Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Sanxiang Advanced 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 Sanxiang Advanced will offset losses from the drop in Sanxiang Advanced'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 |
Sanxiang Advanced vs. Zijin Mining Group | Sanxiang Advanced vs. Wanhua Chemical Group | Sanxiang Advanced vs. Baoshan Iron Steel | Sanxiang Advanced 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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