Correlation Between Sunway Construction and SSF Home
Can any of the company-specific risk be diversified away by investing in both Sunway Construction and SSF Home 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 Sunway Construction and SSF Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunway Construction Group and SSF Home Group, you can compare the effects of market volatilities on Sunway Construction and SSF Home 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 Sunway Construction with a short position of SSF Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunway Construction and SSF Home.
Diversification Opportunities for Sunway Construction and SSF Home
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunway and SSF is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Sunway Construction Group and SSF Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSF Home Group and Sunway Construction 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 Sunway Construction Group are associated (or correlated) with SSF Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSF Home Group has no effect on the direction of Sunway Construction i.e., Sunway Construction and SSF Home go up and down completely randomly.
Pair Corralation between Sunway Construction and SSF Home
Assuming the 90 days trading horizon Sunway Construction Group is expected to generate 0.96 times more return on investment than SSF Home. However, Sunway Construction Group is 1.05 times less risky than SSF Home. It trades about 0.16 of its potential returns per unit of risk. SSF Home Group is currently generating about 0.06 per unit of risk. If you would invest 186.00 in Sunway Construction Group on September 4, 2024 and sell it today you would earn a total of 267.00 from holding Sunway Construction Group or generate 143.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunway Construction Group vs. SSF Home Group
Performance |
| Timeline |
| Sunway Construction |
| SSF Home Group |
Sunway Construction and SSF Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunway Construction and SSF Home
The main advantage of trading using opposite Sunway Construction and SSF Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunway Construction position performs unexpectedly, SSF Home 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 SSF Home will offset losses from the drop in SSF Home's long position.| Sunway Construction vs. Pesona Metro Holdings | Sunway Construction vs. Ho Hup Construction | Sunway Construction vs. Central Industrial Corp |
| SSF Home vs. Star Media Group | SSF Home vs. Petronas Chemicals Group | SSF Home vs. Senheng New Retail | SSF Home vs. Silver Ridge Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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