Correlation Between Farglory Land and Sinopac Financial
Can any of the company-specific risk be diversified away by investing in both Farglory Land and Sinopac Financial 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 Farglory Land and Sinopac Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Farglory Land Development and Sinopac Financial Holdings, you can compare the effects of market volatilities on Farglory Land and Sinopac Financial 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 Farglory Land with a short position of Sinopac Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farglory Land and Sinopac Financial.
Diversification Opportunities for Farglory Land and Sinopac Financial
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Farglory and Sinopac is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Farglory Land Development and Sinopac Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinopac Financial and Farglory Land 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 Farglory Land Development are associated (or correlated) with Sinopac Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinopac Financial has no effect on the direction of Farglory Land i.e., Farglory Land and Sinopac Financial go up and down completely randomly.
Pair Corralation between Farglory Land and Sinopac Financial
Assuming the 90 days trading horizon Farglory Land Development is expected to under-perform the Sinopac Financial. In addition to that, Farglory Land is 1.8 times more volatile than Sinopac Financial Holdings. It trades about -0.1 of its total potential returns per unit of risk. Sinopac Financial Holdings is currently generating about 0.01 per unit of volatility. If you would invest 2,325 in Sinopac Financial Holdings on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Sinopac Financial Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Farglory Land Development vs. Sinopac Financial Holdings
Performance |
| Timeline |
| Farglory Land Development |
| Sinopac Financial |
Farglory Land and Sinopac Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Farglory Land and Sinopac Financial
The main advantage of trading using opposite Farglory Land and Sinopac Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farglory Land position performs unexpectedly, Sinopac Financial 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 Sinopac Financial will offset losses from the drop in Sinopac Financial's long position.| Farglory Land vs. Ruentex Development Co | Farglory Land vs. CTCI Corp | Farglory Land vs. Information Technology Total | Farglory Land vs. Ennoconn Corp |
| Sinopac Financial vs. First Financial Holding | Sinopac Financial vs. Taishin Financial Holding | Sinopac Financial vs. CTBC Financial Holding | Sinopac Financial vs. Mega Financial Holding |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |