Correlation Between Sinyi Realty and Yulon Finance
Can any of the company-specific risk be diversified away by investing in both Sinyi Realty and Yulon Finance 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 Sinyi Realty and Yulon Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinyi Realty and Yulon Finance Corp, you can compare the effects of market volatilities on Sinyi Realty and Yulon Finance 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 Sinyi Realty with a short position of Yulon Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinyi Realty and Yulon Finance.
Diversification Opportunities for Sinyi Realty and Yulon Finance
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinyi and Yulon is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sinyi Realty and Yulon Finance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yulon Finance Corp and Sinyi Realty 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 Sinyi Realty are associated (or correlated) with Yulon Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yulon Finance Corp has no effect on the direction of Sinyi Realty i.e., Sinyi Realty and Yulon Finance go up and down completely randomly.
Pair Corralation between Sinyi Realty and Yulon Finance
Assuming the 90 days trading horizon Sinyi Realty is expected to generate 0.72 times more return on investment than Yulon Finance. However, Sinyi Realty is 1.4 times less risky than Yulon Finance. It trades about 0.02 of its potential returns per unit of risk. Yulon Finance Corp is currently generating about -0.08 per unit of risk. If you would invest 2,850 in Sinyi Realty on August 25, 2024 and sell it today you would earn a total of 105.00 from holding Sinyi Realty or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinyi Realty vs. Yulon Finance Corp
Performance |
| Timeline |
| Sinyi Realty |
| Yulon Finance Corp |
Sinyi Realty and Yulon Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinyi Realty and Yulon Finance
The main advantage of trading using opposite Sinyi Realty and Yulon Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinyi Realty position performs unexpectedly, Yulon Finance 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 Yulon Finance will offset losses from the drop in Yulon Finance's long position.| Sinyi Realty vs. Chainqui Construction Development | Sinyi Realty vs. Kee Tai Properties | Sinyi Realty vs. Zinwell | Sinyi Realty vs. Symtek Automation Asia |
| Yulon Finance vs. Chailease Holding Co | Yulon Finance vs. Taiwan Secom Co | Yulon Finance vs. TTET Union Corp | Yulon Finance vs. China Steel Chemical |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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