Correlation Between Sinopac Securities and Sinopac ICE

Can any of the company-specific risk be diversified away by investing in both Sinopac Securities and Sinopac ICE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sinopac Securities and Sinopac ICE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sinopac Securities Corp and Sinopac ICE 10, you can compare the effects of market volatilities on Sinopac Securities and Sinopac ICE 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 Sinopac Securities with a short position of Sinopac ICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinopac Securities and Sinopac ICE.

Diversification Opportunities for Sinopac Securities and Sinopac ICE

-0.29

Correlation Coefficient

Sinopac Securities  Sinopac ICE

Very good diversification

The 3 months correlation between Sinopac and Sinopac is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sinopac Securities Corp and Sinopac ICE 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinopac ICE 10 and Sinopac Securities 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 Sinopac Securities Corp are associated (or correlated) with Sinopac ICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinopac ICE 10 has no effect on the direction of Sinopac Securities i.e., Sinopac Securities and Sinopac ICE go up and down completely randomly.

Pair Corralation between Sinopac Securities and Sinopac ICE

Assuming the 90 days trading horizon Sinopac Securities Corp is expected to generate 1.6 times more return on investment than Sinopac ICE. However, Sinopac Securities is 1.6 times more volatile than Sinopac ICE 10. It trades about 0.14 of its potential returns per unit of risk. Sinopac ICE 10 is currently generating about 0.0 per unit of risk. If you would invest  1,763  in Sinopac Securities Corp on September 29, 2024 and sell it today you would earn a total of  1,859  from holding Sinopac Securities Corp or generate 105.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.59%
Values	Daily Returns

Sinopac Securities Corp  vs.  Sinopac ICE 10

Sinopac Securities Corp

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sinopac Securities Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Sinopac Securities may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Sinopac ICE 10

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sinopac ICE 10 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Sinopac ICE is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sinopac Securities and Sinopac ICE

The main advantage of trading using opposite Sinopac Securities and Sinopac ICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinopac Securities position performs unexpectedly, Sinopac ICE 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 Sinopac ICE will offset losses from the drop in Sinopac ICE's long position.

The idea behind Sinopac Securities Corp and Sinopac ICE 10 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.