Correlation Between Hoshine Silicon and Sichuan Chuantou
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By analyzing existing cross correlation between Hoshine Silicon Ind and Sichuan Chuantou Energy, you can compare the effects of market volatilities on Hoshine Silicon and Sichuan Chuantou 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 Chuantou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoshine Silicon and Sichuan Chuantou.
Diversification Opportunities for Hoshine Silicon and Sichuan Chuantou
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hoshine and Sichuan is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hoshine Silicon Ind and Sichuan Chuantou Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Chuantou Energy 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 Chuantou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Chuantou Energy has no effect on the direction of Hoshine Silicon i.e., Hoshine Silicon and Sichuan Chuantou go up and down completely randomly.
Pair Corralation between Hoshine Silicon and Sichuan Chuantou
Assuming the 90 days trading horizon Hoshine Silicon Ind is expected to under-perform the Sichuan Chuantou. In addition to that, Hoshine Silicon is 1.7 times more volatile than Sichuan Chuantou Energy. It trades about -0.02 of its total potential returns per unit of risk. Sichuan Chuantou Energy is currently generating about 0.06 per unit of volatility. If you would invest 1,189 in Sichuan Chuantou Energy on September 24, 2024 and sell it today you would earn a total of 519.00 from holding Sichuan Chuantou Energy or generate 43.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hoshine Silicon Ind vs. Sichuan Chuantou Energy
Performance |
Timeline |
Hoshine Silicon Ind |
Sichuan Chuantou Energy |
Hoshine Silicon and Sichuan Chuantou Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hoshine Silicon and Sichuan Chuantou
The main advantage of trading using opposite Hoshine Silicon and Sichuan Chuantou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoshine Silicon position performs unexpectedly, Sichuan Chuantou 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 Chuantou will offset losses from the drop in Sichuan Chuantou'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 Chuantou vs. Chengdu Kanghua Biological | Sichuan Chuantou vs. Beijing Wantai Biological | Sichuan Chuantou vs. Suzhou Novoprotein Scientific | Sichuan Chuantou vs. Aluminum Corp of |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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