Correlation Between Bayport International and Sino Land
Can any of the company-specific risk be diversified away by investing in both Bayport International and Sino Land 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 Bayport International and Sino Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bayport International Holdings and Sino Land Co, you can compare the effects of market volatilities on Bayport International and Sino Land 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 Bayport International with a short position of Sino Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayport International and Sino Land.
Diversification Opportunities for Bayport International and Sino Land
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bayport and Sino is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bayport International Holdings and Sino Land Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Land and Bayport International 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 Bayport International Holdings are associated (or correlated) with Sino Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Land has no effect on the direction of Bayport International i.e., Bayport International and Sino Land go up and down completely randomly.
Pair Corralation between Bayport International and Sino Land
Given the investment horizon of 90 days Bayport International Holdings is expected to under-perform the Sino Land. In addition to that, Bayport International is 8.22 times more volatile than Sino Land Co. It trades about -0.21 of its total potential returns per unit of risk. Sino Land Co is currently generating about -0.13 per unit of volatility. If you would invest 511.00 in Sino Land Co on August 28, 2024 and sell it today you would lose (26.00) from holding Sino Land Co or give up 5.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bayport International Holdings vs. Sino Land Co
Performance |
| Timeline |
| Bayport International |
| Sino Land |
Bayport International and Sino Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayport International and Sino Land
The main advantage of trading using opposite Bayport International and Sino Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayport International position performs unexpectedly, Sino Land 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 Land will offset losses from the drop in Sino Land's long position.| Bayport International vs. Hong Kong Land | Bayport International vs. Wharf Holdings | Bayport International vs. Holiday Island Holdings | Bayport International vs. Sun Hung Kai |
| Sino Land vs. Wharf Holdings | Sino Land vs. Hong Kong Land | Sino Land vs. Sun Hung Kai | Sino Land vs. Country Garden 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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