Correlation Between Sino Horizon and D Link
Can any of the company-specific risk be diversified away by investing in both Sino Horizon and D Link 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 Horizon and D Link into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sino Horizon Holdings and D Link Corp, you can compare the effects of market volatilities on Sino Horizon and D Link 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 Horizon with a short position of D Link. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Horizon and D Link.
Diversification Opportunities for Sino Horizon and D Link
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sino and 2332 is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sino Horizon Holdings and D Link Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on D Link Corp and Sino Horizon 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 Horizon Holdings are associated (or correlated) with D Link. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of D Link Corp has no effect on the direction of Sino Horizon i.e., Sino Horizon and D Link go up and down completely randomly.
Pair Corralation between Sino Horizon and D Link
Assuming the 90 days trading horizon Sino Horizon Holdings is expected to under-perform the D Link. In addition to that, Sino Horizon is 1.41 times more volatile than D Link Corp. It trades about -0.03 of its total potential returns per unit of risk. D Link Corp is currently generating about 0.09 per unit of volatility. If you would invest 1,810 in D Link Corp on October 26, 2024 and sell it today you would earn a total of 525.00 from holding D Link Corp or generate 29.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Horizon Holdings vs. D Link Corp
Performance |
| Timeline |
| Sino Horizon Holdings |
| D Link Corp |
Sino Horizon and D Link Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Horizon and D Link
The main advantage of trading using opposite Sino Horizon and D Link positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Horizon position performs unexpectedly, D Link 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 D Link will offset losses from the drop in D Link's long position.| Sino Horizon vs. Kee Tai Properties | Sino Horizon vs. Hung Sheng Construction | Sino Horizon vs. BES Engineering Co | Sino Horizon vs. Chainqui Construction Development |
| D Link vs. Accton Technology Corp | D Link vs. Compal Electronics | D Link vs. Qisda Corp | D Link vs. Macronix International Co |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |