Correlation Between International Games and Sinyi Realty
Can any of the company-specific risk be diversified away by investing in both International Games and Sinyi Realty 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 International Games and Sinyi Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Games System and Sinyi Realty, you can compare the effects of market volatilities on International Games and Sinyi Realty 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 International Games with a short position of Sinyi Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Games and Sinyi Realty.
Diversification Opportunities for International Games and Sinyi Realty
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between International and Sinyi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding International Games System and Sinyi Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinyi Realty and International Games 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 International Games System are associated (or correlated) with Sinyi Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinyi Realty has no effect on the direction of International Games i.e., International Games and Sinyi Realty go up and down completely randomly.
Pair Corralation between International Games and Sinyi Realty
Assuming the 90 days trading horizon International Games System is expected to under-perform the Sinyi Realty. In addition to that, International Games is 2.47 times more volatile than Sinyi Realty. It trades about -0.24 of its total potential returns per unit of risk. Sinyi Realty is currently generating about -0.06 per unit of volatility. If you would invest 3,035 in Sinyi Realty on August 29, 2024 and sell it today you would lose (40.00) from holding Sinyi Realty or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Games System vs. Sinyi Realty
Performance |
| Timeline |
| International Games |
| Sinyi Realty |
International Games and Sinyi Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Games and Sinyi Realty
The main advantage of trading using opposite International Games and Sinyi Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Games position performs unexpectedly, Sinyi Realty 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 Sinyi Realty will offset losses from the drop in Sinyi Realty's long position.| International Games vs. ReaLy Development Construction | International Games vs. Hung Sheng Construction | International Games vs. WINSON Machinery Co | International Games vs. New Asia Construction |
| Sinyi Realty vs. Taiwan Secom Co | Sinyi Realty vs. CHC Resources Corp | Sinyi Realty vs. CTCI Corp | Sinyi Realty vs. Huaku Development Co |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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