Correlation Between Chainqui Construction and Sino Horizon
Can any of the company-specific risk be diversified away by investing in both Chainqui Construction and Sino Horizon 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 Chainqui Construction and Sino Horizon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chainqui Construction Development and Sino Horizon Holdings, you can compare the effects of market volatilities on Chainqui Construction and Sino Horizon 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 Chainqui Construction with a short position of Sino Horizon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chainqui Construction and Sino Horizon.
Diversification Opportunities for Chainqui Construction and Sino Horizon
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chainqui and Sino is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Chainqui Construction Developm and Sino Horizon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Horizon Holdings and Chainqui Construction 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 Chainqui Construction Development are associated (or correlated) with Sino Horizon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Horizon Holdings has no effect on the direction of Chainqui Construction i.e., Chainqui Construction and Sino Horizon go up and down completely randomly.
Pair Corralation between Chainqui Construction and Sino Horizon
Assuming the 90 days trading horizon Chainqui Construction Development is expected to under-perform the Sino Horizon. But the stock apears to be less risky and, when comparing its historical volatility, Chainqui Construction Development is 1.66 times less risky than Sino Horizon. The stock trades about -0.15 of its potential returns per unit of risk. The Sino Horizon Holdings is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 3,105 in Sino Horizon Holdings on October 25, 2024 and sell it today you would lose (665.00) from holding Sino Horizon Holdings or give up 21.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chainqui Construction Developm vs. Sino Horizon Holdings
Performance |
| Timeline |
| Chainqui Construction |
| Sino Horizon Holdings |
Chainqui Construction and Sino Horizon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chainqui Construction and Sino Horizon
The main advantage of trading using opposite Chainqui Construction and Sino Horizon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chainqui Construction position performs unexpectedly, Sino Horizon 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 Sino Horizon will offset losses from the drop in Sino Horizon's long position.| Chainqui Construction vs. Chang Type Industrial | Chainqui Construction vs. Anderson Industrial Corp | Chainqui Construction vs. Klingon Aerospace | Chainqui Construction vs. Basso Industry Corp |
| Sino Horizon vs. Kee Tai Properties | Sino Horizon vs. Hung Sheng Construction | Sino Horizon vs. BES Engineering Co | Sino Horizon vs. Chainqui Construction Development |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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