Correlation Between Aspeed Technology and Sino Horizon
Can any of the company-specific risk be diversified away by investing in both Aspeed Technology and Sino Horizon 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 Aspeed Technology and Sino Horizon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspeed Technology and Sino Horizon Holdings, you can compare the effects of market volatilities on Aspeed Technology and Sino Horizon 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 Aspeed Technology with a short position of Sino Horizon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspeed Technology and Sino Horizon.
Diversification Opportunities for Aspeed Technology and Sino Horizon
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aspeed and Sino is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aspeed Technology and Sino Horizon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Horizon Holdings and Aspeed Technology 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 Aspeed Technology are associated (or correlated) with Sino Horizon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Horizon Holdings has no effect on the direction of Aspeed Technology i.e., Aspeed Technology and Sino Horizon go up and down completely randomly.
Pair Corralation between Aspeed Technology and Sino Horizon
Assuming the 90 days trading horizon Aspeed Technology is expected to generate 1.13 times more return on investment than Sino Horizon. However, Aspeed Technology is 1.13 times more volatile than Sino Horizon Holdings. It trades about 0.04 of its potential returns per unit of risk. Sino Horizon Holdings is currently generating about 0.02 per unit of risk. If you would invest 244,764 in Aspeed Technology on October 25, 2024 and sell it today you would earn a total of 110,236 from holding Aspeed Technology or generate 45.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspeed Technology vs. Sino Horizon Holdings
Performance |
| Timeline |
| Aspeed Technology |
| Sino Horizon Holdings |
Aspeed Technology and Sino Horizon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspeed Technology and Sino Horizon
The main advantage of trading using opposite Aspeed Technology and Sino Horizon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspeed Technology position performs unexpectedly, Sino Horizon 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 Sino Horizon will offset losses from the drop in Sino Horizon's long position.| Aspeed Technology vs. Asmedia Technology | Aspeed Technology vs. Silergy Corp | Aspeed Technology vs. Parade Technologies | Aspeed Technology vs. Wiwynn Corp |
| Sino Horizon vs. Kee Tai Properties | Sino Horizon vs. Hung Sheng Construction | Sino Horizon vs. BES Engineering Co | Sino Horizon vs. Chainqui Construction Development |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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