Correlation Between Sino Horizon and Kee Tai
Can any of the company-specific risk be diversified away by investing in both Sino Horizon and Kee Tai 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 Kee Tai 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 Kee Tai Properties, you can compare the effects of market volatilities on Sino Horizon and Kee Tai 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 Kee Tai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Horizon and Kee Tai.
Diversification Opportunities for Sino Horizon and Kee Tai
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sino and Kee is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sino Horizon Holdings and Kee Tai Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kee Tai Properties 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 Kee Tai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kee Tai Properties has no effect on the direction of Sino Horizon i.e., Sino Horizon and Kee Tai go up and down completely randomly.
Pair Corralation between Sino Horizon and Kee Tai
Assuming the 90 days trading horizon Sino Horizon Holdings is expected to generate 1.44 times more return on investment than Kee Tai. However, Sino Horizon is 1.44 times more volatile than Kee Tai Properties. It trades about 0.04 of its potential returns per unit of risk. Kee Tai Properties is currently generating about 0.03 per unit of risk. If you would invest 2,180 in Sino Horizon Holdings on August 31, 2024 and sell it today you would earn a total of 865.00 from holding Sino Horizon Holdings or generate 39.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Sino Horizon Holdings vs. Kee Tai Properties
Performance |
| Timeline |
| Sino Horizon Holdings |
| Kee Tai Properties |
Sino Horizon and Kee Tai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Horizon and Kee Tai
The main advantage of trading using opposite Sino Horizon and Kee Tai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Horizon position performs unexpectedly, Kee Tai 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 Kee Tai will offset losses from the drop in Kee Tai'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 |
| Kee Tai vs. Hung Sheng Construction | Kee Tai vs. Chainqui Construction Development | Kee Tai vs. BES Engineering Co | Kee Tai vs. Long Bon International |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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