Correlation Between Sino Horizon and Cyberlink
Can any of the company-specific risk be diversified away by investing in both Sino Horizon and Cyberlink 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 Cyberlink 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 Cyberlink Co, you can compare the effects of market volatilities on Sino Horizon and Cyberlink 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 Cyberlink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Horizon and Cyberlink.
Diversification Opportunities for Sino Horizon and Cyberlink
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sino and Cyberlink is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sino Horizon Holdings and Cyberlink Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyberlink 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 Cyberlink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyberlink has no effect on the direction of Sino Horizon i.e., Sino Horizon and Cyberlink go up and down completely randomly.
Pair Corralation between Sino Horizon and Cyberlink
Assuming the 90 days trading horizon Sino Horizon Holdings is expected to under-perform the Cyberlink. In addition to that, Sino Horizon is 2.17 times more volatile than Cyberlink Co. It trades about -0.03 of its total potential returns per unit of risk. Cyberlink Co is currently generating about 0.01 per unit of volatility. If you would invest 9,790 in Cyberlink Co on October 26, 2024 and sell it today you would lose (70.00) from holding Cyberlink Co or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Horizon Holdings vs. Cyberlink Co
Performance |
| Timeline |
| Sino Horizon Holdings |
| Cyberlink |
Sino Horizon and Cyberlink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Horizon and Cyberlink
The main advantage of trading using opposite Sino Horizon and Cyberlink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Horizon position performs unexpectedly, Cyberlink 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 Cyberlink will offset losses from the drop in Cyberlink'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 |
| Cyberlink vs. Kinsus Interconnect Technology | Cyberlink vs. Topco Scientific Co | Cyberlink vs. Wistron Corp | Cyberlink vs. Elan Microelectronics Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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