Correlation Between Sino Horizon and Pan Jit
Can any of the company-specific risk be diversified away by investing in both Sino Horizon and Pan Jit 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 Pan Jit 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 Pan Jit International, you can compare the effects of market volatilities on Sino Horizon and Pan Jit 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 Pan Jit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Horizon and Pan Jit.
Diversification Opportunities for Sino Horizon and Pan Jit
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sino and Pan is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Sino Horizon Holdings and Pan Jit International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Jit International 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 Pan Jit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Jit International has no effect on the direction of Sino Horizon i.e., Sino Horizon and Pan Jit go up and down completely randomly.
Pair Corralation between Sino Horizon and Pan Jit
Assuming the 90 days trading horizon Sino Horizon Holdings is expected to under-perform the Pan Jit. In addition to that, Sino Horizon is 1.98 times more volatile than Pan Jit International. It trades about -0.21 of its total potential returns per unit of risk. Pan Jit International is currently generating about -0.15 per unit of volatility. If you would invest 5,270 in Pan Jit International on October 26, 2024 and sell it today you would lose (460.00) from holding Pan Jit International or give up 8.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Horizon Holdings vs. Pan Jit International
Performance |
| Timeline |
| Sino Horizon Holdings |
| Pan Jit International |
Sino Horizon and Pan Jit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Horizon and Pan Jit
The main advantage of trading using opposite Sino Horizon and Pan Jit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Horizon position performs unexpectedly, Pan Jit 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 Pan Jit will offset losses from the drop in Pan Jit'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 |
| Pan Jit vs. Elan Microelectronics Corp | Pan Jit vs. Walsin Technology Corp | Pan Jit vs. Unimicron Technology Corp | Pan Jit vs. Visual Photonics Epitaxy |
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 CEOs Directory module to screen CEOs from public companies around the world.
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