Correlation Between Sun Hung and Bayport International
Can any of the company-specific risk be diversified away by investing in both Sun Hung and Bayport International 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 Sun Hung and Bayport International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Hung Kai and Bayport International Holdings, you can compare the effects of market volatilities on Sun Hung and Bayport International 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 Sun Hung with a short position of Bayport International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Hung and Bayport International.
Diversification Opportunities for Sun Hung and Bayport International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sun and Bayport is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sun Hung Kai and Bayport International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayport International and Sun Hung 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 Sun Hung Kai are associated (or correlated) with Bayport International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayport International has no effect on the direction of Sun Hung i.e., Sun Hung and Bayport International go up and down completely randomly.
Pair Corralation between Sun Hung and Bayport International
If you would invest 959.00 in Sun Hung Kai on December 28, 2024 and sell it today you would earn a total of 127.00 from holding Sun Hung Kai or generate 13.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 86.67% |
Values | Daily Returns |
Sun Hung Kai vs. Bayport International Holdings
Performance |
Timeline |
Sun Hung Kai |
Bayport International |
Sun Hung and Bayport International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sun Hung and Bayport International
The main advantage of trading using opposite Sun Hung and Bayport International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Hung position performs unexpectedly, Bayport International 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 Bayport International will offset losses from the drop in Bayport International's long position.Sun Hung vs. Sino Land Co | Sun Hung vs. Holiday Island Holdings | Sun Hung vs. Daiwa House Industry | Sun Hung vs. China Overseas Land |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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