Correlation Between SYN Prop and Henderson Land

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

By analyzing existing cross correlation between SYN prop e and Henderson Land Development, you can compare the effects of market volatilities on SYN Prop and Henderson Land 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 SYN Prop with a short position of Henderson Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of SYN Prop and Henderson Land.

Diversification Opportunities for SYN Prop and Henderson Land

-0.68

Correlation Coefficient

SYN Prop  Henderson Land

Excellent diversification

The 3 months correlation between SYN and Henderson is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding SYN prop e and Henderson Land Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henderson Land Devel and SYN Prop 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 SYN prop e are associated (or correlated) with Henderson Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henderson Land Devel has no effect on the direction of SYN Prop i.e., SYN Prop and Henderson Land go up and down completely randomly.

Pair Corralation between SYN Prop and Henderson Land

Assuming the 90 days horizon SYN prop e is expected to generate 14.34 times more return on investment than Henderson Land. However, SYN Prop is 14.34 times more volatile than Henderson Land Development. It trades about 0.32 of its potential returns per unit of risk. Henderson Land Development is currently generating about -0.19 per unit of risk. If you would invest  153.00  in SYN prop e on October 6, 2024 and sell it today you would earn a total of  373.00  from holding SYN prop e or generate 243.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

SYN prop e  vs.  Henderson Land Development

SYN prop e

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SYN prop e are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, SYN Prop showed solid returns over the last few months and may actually be approaching a breakup point.

Henderson Land Devel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Henderson Land Development has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with SYN Prop and Henderson Land

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

The idea behind SYN prop e and Henderson Land Development 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.