Correlation Between Sinyi Realty and Chong Hong
Can any of the company-specific risk be diversified away by investing in both Sinyi Realty and Chong Hong 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 Sinyi Realty and Chong Hong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinyi Realty and Chong Hong Construction, you can compare the effects of market volatilities on Sinyi Realty and Chong Hong 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 Sinyi Realty with a short position of Chong Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinyi Realty and Chong Hong.
Diversification Opportunities for Sinyi Realty and Chong Hong
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinyi and Chong is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sinyi Realty and Chong Hong Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chong Hong Construction and Sinyi Realty 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 Sinyi Realty are associated (or correlated) with Chong Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chong Hong Construction has no effect on the direction of Sinyi Realty i.e., Sinyi Realty and Chong Hong go up and down completely randomly.
Pair Corralation between Sinyi Realty and Chong Hong
Assuming the 90 days trading horizon Sinyi Realty is expected to generate 4.13 times less return on investment than Chong Hong. But when comparing it to its historical volatility, Sinyi Realty is 1.97 times less risky than Chong Hong. It trades about 0.05 of its potential returns per unit of risk. Chong Hong Construction is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8,800 in Chong Hong Construction on December 4, 2024 and sell it today you would earn a total of 700.00 from holding Chong Hong Construction or generate 7.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sinyi Realty vs. Chong Hong Construction
Performance |
Timeline |
Sinyi Realty |
Chong Hong Construction |
Sinyi Realty and Chong Hong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinyi Realty and Chong Hong
The main advantage of trading using opposite Sinyi Realty and Chong Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinyi Realty position performs unexpectedly, Chong Hong 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 Chong Hong will offset losses from the drop in Chong Hong's long position.Sinyi Realty vs. Taiwan Secom Co | Sinyi Realty vs. CHC Resources Corp | Sinyi Realty vs. CTCI Corp | Sinyi Realty vs. Huaku Development Co |
Chong Hong vs. Huaku Development Co | Chong Hong vs. Farglory Land Development | Chong Hong vs. Highwealth Construction Corp | Chong Hong vs. Ruentex Development Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |