Correlation Between Sino Horizon and Space Shuttle
Can any of the company-specific risk be diversified away by investing in both Sino Horizon and Space Shuttle 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 Space Shuttle 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 Space Shuttle Hi Tech, you can compare the effects of market volatilities on Sino Horizon and Space Shuttle 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 Space Shuttle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Horizon and Space Shuttle.
Diversification Opportunities for Sino Horizon and Space Shuttle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sino and Space is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sino Horizon Holdings and Space Shuttle Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Shuttle Hi 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 Space Shuttle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Shuttle Hi has no effect on the direction of Sino Horizon i.e., Sino Horizon and Space Shuttle go up and down completely randomly.
Pair Corralation between Sino Horizon and Space Shuttle
Assuming the 90 days trading horizon Sino Horizon Holdings is expected to generate 1.16 times more return on investment than Space Shuttle. However, Sino Horizon is 1.16 times more volatile than Space Shuttle Hi Tech. It trades about 0.02 of its potential returns per unit of risk. Space Shuttle Hi Tech is currently generating about 0.01 per unit of risk. If you would invest 2,215 in Sino Horizon Holdings on November 2, 2024 and sell it today you would earn a total of 225.00 from holding Sino Horizon Holdings or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Horizon Holdings vs. Space Shuttle Hi Tech
Performance |
| Timeline |
| Sino Horizon Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Space Shuttle Hi |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sino Horizon and Space Shuttle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Horizon and Space Shuttle
The main advantage of trading using opposite Sino Horizon and Space Shuttle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Horizon position performs unexpectedly, Space Shuttle 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 Space Shuttle will offset losses from the drop in Space Shuttle's long position.The idea behind Sino Horizon Holdings and Space Shuttle Hi Tech 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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