Correlation Between Country Garden and Sino Land

Can any of the company-specific risk be diversified away by investing in both Country Garden and Sino Land 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 Country Garden and Sino Land into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Country Garden Holdings and Sino Land Co, you can compare the effects of market volatilities on Country Garden and Sino Land 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 Country Garden with a short position of Sino Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Country Garden and Sino Land.

Diversification Opportunities for Country Garden and Sino Land

0.0

Correlation Coefficient

Country Garden  Sino Land

Pay attention - limited upside

The 3 months correlation between Country and Sino is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Country Garden Holdings and Sino Land Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Land and Country Garden 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 Country Garden Holdings are associated (or correlated) with Sino Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Land has no effect on the direction of Country Garden i.e., Country Garden and Sino Land go up and down completely randomly.

Pair Corralation between Country Garden and Sino Land

If you would invest  497.00  in Sino Land Co on December 29, 2024 and sell it today you would earn a total of  42.00  from holding Sino Land Co or generate 8.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Country Garden Holdings  vs.  Sino Land Co

Country Garden Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Country Garden Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Country Garden is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Sino Land

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sino Land Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Sino Land may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Country Garden and Sino Land

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

The idea behind Country Garden Holdings and Sino Land Co 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.