Correlation Between Gap, and Shui On
Can any of the company-specific risk be diversified away by investing in both Gap, and Shui On 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 Gap, and Shui On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gap, and Shui On Land, you can compare the effects of market volatilities on Gap, and Shui On 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 Gap, with a short position of Shui On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gap, and Shui On.
Diversification Opportunities for Gap, and Shui On
Modest diversification
The 3 months correlation between Gap, and Shui is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding The Gap, and Shui On Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shui On Land and Gap, 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 The Gap, are associated (or correlated) with Shui On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shui On Land has no effect on the direction of Gap, i.e., Gap, and Shui On go up and down completely randomly.
Pair Corralation between Gap, and Shui On
Considering the 90-day investment horizon The Gap, is expected to generate 0.1 times more return on investment than Shui On. However, The Gap, is 9.64 times less risky than Shui On. It trades about 0.04 of its potential returns per unit of risk. Shui On Land is currently generating about -0.04 per unit of risk. If you would invest 1,943 in The Gap, on October 9, 2024 and sell it today you would earn a total of 433.00 from holding The Gap, or generate 22.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 3.24% |
Values | Daily Returns |
The Gap, vs. Shui On Land
Performance |
Timeline |
Gap, |
Shui On Land |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gap, and Shui On Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gap, and Shui On
The main advantage of trading using opposite Gap, and Shui On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gap, position performs unexpectedly, Shui On 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 Shui On will offset losses from the drop in Shui On's long position.Gap, vs. Gladstone Investment | Gap, vs. RadNet Inc | Gap, vs. Athene Holding | Gap, vs. Virtus Investment Partners, |
Shui On vs. Astral Foods Limited | Shui On vs. Marfrig Global Foods | Shui On vs. United Natural Foods | Shui On vs. Cardinal Health |
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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