Correlation Between Sands China and Sands China
Can any of the company-specific risk be diversified away by investing in both Sands China and Sands China 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 Sands China and Sands China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sands China and Sands China Ltd, you can compare the effects of market volatilities on Sands China and Sands China 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 Sands China with a short position of Sands China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sands China and Sands China.
Diversification Opportunities for Sands China and Sands China
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sands and Sands is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sands China and Sands China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sands China and Sands China 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 Sands China are associated (or correlated) with Sands China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sands China has no effect on the direction of Sands China i.e., Sands China and Sands China go up and down completely randomly.
Pair Corralation between Sands China and Sands China
Assuming the 90 days horizon Sands China is expected to under-perform the Sands China. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sands China is 1.01 times less risky than Sands China. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Sands China Ltd is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,240 in Sands China Ltd on December 4, 2024 and sell it today you would earn a total of 92.00 from holding Sands China Ltd or generate 4.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.24% |
Values | Daily Returns |
Sands China vs. Sands China Ltd
Performance |
Timeline |
Sands China |
Sands China |
Sands China and Sands China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sands China and Sands China
The main advantage of trading using opposite Sands China and Sands China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sands China position performs unexpectedly, Sands China 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 Sands China will offset losses from the drop in Sands China's long position.Sands China vs. Las Vegas Sands | Sands China vs. MGM Resorts International | Sands China vs. Caesars Entertainment | Sands China vs. Wynn Resorts Limited |
Sands China vs. SJM Holdings Ltd | Sands China vs. Studio City International | Sands China vs. Monarch Casino Resort | Sands China vs. Playa Hotels Resorts |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |