Correlation Between Hoshine Silicon and Sichuan Tianqi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hoshine Silicon Ind and Sichuan Tianqi Lithium, you can compare the effects of market volatilities on Hoshine Silicon and Sichuan Tianqi 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 Sichuan Tianqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Sichuan Tianqi.
Diversification Opportunities for Hoshine Silicon and Sichuan Tianqi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hoshine and Sichuan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Sichuan Tianqi Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Tianqi Lithium 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 Sichuan Tianqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Tianqi Lithium has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Sichuan Tianqi go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Sichuan Tianqi
Assuming the 90 days trading horizon Hoshine Silicon is expected to generate 1.77 times less return on investment than Sichuan Tianqi. But when comparing it to its historical volatility, Hoshine Silicon Ind is 1.32 times less risky than Sichuan Tianqi. It trades about 0.11 of its potential returns per unit of risk. Sichuan Tianqi Lithium is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,493 in Sichuan Tianqi Lithium on September 23, 2024 and sell it today you would earn a total of 991.00 from holding Sichuan Tianqi Lithium or generate 39.75% 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. Sichuan Tianqi Lithium
Performance |
Timeline |
Hoshine Silicon Ind |
Sichuan Tianqi Lithium |
Hoshine Silicon and Sichuan Tianqi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hoshine Silicon and Sichuan Tianqi
The main advantage of trading using opposite Hoshine Silicon and Sichuan Tianqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Sichuan Tianqi 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 Sichuan Tianqi will offset losses from the drop in Sichuan Tianqi'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 |
Sichuan Tianqi vs. Zijin Mining Group | Sichuan Tianqi vs. Wanhua Chemical Group | Sichuan Tianqi vs. Baoshan Iron Steel | Sichuan Tianqi 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Fundamental Analysis View fundamental data based on most recent published financial statements |