Correlation Between Sino Land and Rumble

Can any of the company-specific risk be diversified away by investing in both Sino Land and Rumble 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 Rumble 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 Rumble Inc, you can compare the effects of market volatilities on Sino Land and Rumble 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 Rumble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Land and Rumble.

Diversification Opportunities for Sino Land and Rumble

-0.63

Correlation Coefficient

Sino Land  Rumble

Excellent diversification

The 3 months correlation between Sino and Rumble is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sino Land Co and Rumble Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rumble Inc 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 Rumble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rumble Inc has no effect on the direction of Sino Land i.e., Sino Land and Rumble go up and down completely randomly.

Pair Corralation between Sino Land and Rumble

Assuming the 90 days horizon Sino Land is expected to generate 5.04 times less return on investment than Rumble. But when comparing it to its historical volatility, Sino Land Co is 5.52 times less risky than Rumble. It trades about 0.06 of its potential returns per unit of risk. Rumble Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  719.00  in Rumble Inc on December 20, 2024 and sell it today you would earn a total of  66.00  from holding Rumble Inc or generate 9.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.33%
Values	Daily Returns

Sino Land Co  vs.  Rumble Inc

Sino Land

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sino Land Co are ranked lower than 4 (%) 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.

Rumble Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Rumble Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Rumble displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sino Land and Rumble

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

The idea behind Sino Land Co and Rumble Inc 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.