Correlation Between Hung Sheng and Sinyi Realty
Can any of the company-specific risk be diversified away by investing in both Hung Sheng and Sinyi Realty 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 Hung Sheng and Sinyi Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hung Sheng Construction and Sinyi Realty, you can compare the effects of market volatilities on Hung Sheng and Sinyi Realty 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 Hung Sheng with a short position of Sinyi Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hung Sheng and Sinyi Realty.
Diversification Opportunities for Hung Sheng and Sinyi Realty
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hung and Sinyi is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Hung Sheng Construction and Sinyi Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinyi Realty and Hung Sheng 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 Hung Sheng Construction are associated (or correlated) with Sinyi Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinyi Realty has no effect on the direction of Hung Sheng i.e., Hung Sheng and Sinyi Realty go up and down completely randomly.
Pair Corralation between Hung Sheng and Sinyi Realty
Assuming the 90 days trading horizon Hung Sheng Construction is expected to generate 1.42 times more return on investment than Sinyi Realty. However, Hung Sheng is 1.42 times more volatile than Sinyi Realty. It trades about 0.03 of its potential returns per unit of risk. Sinyi Realty is currently generating about 0.0 per unit of risk. If you would invest 2,265 in Hung Sheng Construction on September 25, 2024 and sell it today you would earn a total of 325.00 from holding Hung Sheng Construction or generate 14.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.76% |
Values | Daily Returns |
Hung Sheng Construction vs. Sinyi Realty
Performance |
Timeline |
Hung Sheng Construction |
Sinyi Realty |
Hung Sheng and Sinyi Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hung Sheng and Sinyi Realty
The main advantage of trading using opposite Hung Sheng and Sinyi Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hung Sheng position performs unexpectedly, Sinyi Realty 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 Sinyi Realty will offset losses from the drop in Sinyi Realty's long position.Hung Sheng vs. Chainqui Construction Development | Hung Sheng vs. Kee Tai Properties | Hung Sheng vs. BES Engineering Co | Hung Sheng vs. Zinwell |
Sinyi Realty vs. Hung Sheng Construction | Sinyi Realty vs. Chainqui Construction Development | Sinyi Realty vs. BES Engineering Co | Sinyi Realty vs. Long Bon International |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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