Correlation Between Sino Horizon and YeaShin International
Can any of the company-specific risk be diversified away by investing in both Sino Horizon and YeaShin International 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 YeaShin International 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 YeaShin International Development, you can compare the effects of market volatilities on Sino Horizon and YeaShin International 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 YeaShin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Horizon and YeaShin International.
Diversification Opportunities for Sino Horizon and YeaShin International
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sino and YeaShin is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sino Horizon Holdings and YeaShin International Developm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeaShin 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 YeaShin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeaShin International has no effect on the direction of Sino Horizon i.e., Sino Horizon and YeaShin International go up and down completely randomly.
Pair Corralation between Sino Horizon and YeaShin International
Assuming the 90 days trading horizon Sino Horizon is expected to generate 2.82 times less return on investment than YeaShin International. In addition to that, Sino Horizon is 1.53 times more volatile than YeaShin International Development. It trades about 0.1 of its total potential returns per unit of risk. YeaShin International Development is currently generating about 0.44 per unit of volatility. If you would invest 3,120 in YeaShin International Development on November 28, 2024 and sell it today you would earn a total of 370.00 from holding YeaShin International Development or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Sino Horizon Holdings vs. YeaShin International Developm
Performance |
| Timeline |
| Sino Horizon Holdings |
| YeaShin International |
Sino Horizon and YeaShin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Horizon and YeaShin International
The main advantage of trading using opposite Sino Horizon and YeaShin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Horizon position performs unexpectedly, YeaShin International 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 YeaShin International will offset losses from the drop in YeaShin International'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 |
| YeaShin International vs. Rich Development Co | YeaShin International vs. Synmosa Biopharma | YeaShin International vs. Fulltech Fiber Glass | YeaShin International vs. Gloria Material Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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