Correlation Between Sino Land and Koss

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

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

Diversification Opportunities for Sino Land and Koss

0.01

Correlation Coefficient

Sino Land  Koss

Significant diversification

The 3 months correlation between Sino and Koss is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sino Land Co and Koss Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koss and Sino Land 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 Land Co are associated (or correlated) with Koss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koss has no effect on the direction of Sino Land i.e., Sino Land and Koss go up and down completely randomly.

Pair Corralation between Sino Land and Koss

Assuming the 90 days horizon Sino Land is expected to generate 64.89 times less return on investment than Koss. But when comparing it to its historical volatility, Sino Land Co is 5.41 times less risky than Koss. It trades about 0.01 of its potential returns per unit of risk. Koss Corporation is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  253.00  in Koss Corporation on October 22, 2024 and sell it today you would earn a total of  409.00  from holding Koss Corporation or generate 161.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	94.74%
Values	Daily Returns

Sino Land Co  vs.  Koss Corp.

Sino Land

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sino Land Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Sino Land is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Koss

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Koss Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Sino Land and Koss

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

The idea behind Sino Land Co and Koss Corporation 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.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .