Correlation Between Sino Horizon and Sinyi Realty
Can any of the company-specific risk be diversified away by investing in both Sino Horizon 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 Sino Horizon and Sinyi Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sino Horizon Holdings and Sinyi Realty, you can compare the effects of market volatilities on Sino Horizon 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 Sino Horizon with a short position of Sinyi Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Horizon and Sinyi Realty.
Diversification Opportunities for Sino Horizon and Sinyi Realty
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sino and Sinyi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sino Horizon Holdings and Sinyi Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinyi Realty and Sino Horizon 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 Sino Horizon Holdings 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 Sino Horizon i.e., Sino Horizon and Sinyi Realty go up and down completely randomly.
Pair Corralation between Sino Horizon and Sinyi Realty
Assuming the 90 days trading horizon Sino Horizon Holdings is expected to generate 2.88 times more return on investment than Sinyi Realty. However, Sino Horizon is 2.88 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 0.02 per unit of risk. If you would invest 2,105 in Sino Horizon Holdings on September 25, 2024 and sell it today you would earn a total of 505.00 from holding Sino Horizon Holdings or generate 23.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.79% |
Values | Daily Returns |
Sino Horizon Holdings vs. Sinyi Realty
Performance |
Timeline |
Sino Horizon Holdings |
Sinyi Realty |
Sino Horizon and Sinyi Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sino Horizon and Sinyi Realty
The main advantage of trading using opposite Sino Horizon and Sinyi Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Horizon 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.Sino Horizon vs. Hung Sheng Construction | Sino Horizon vs. Chainqui Construction Development | Sino Horizon vs. BES Engineering Co | Sino Horizon vs. Long Bon International |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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