Correlation Between BANK CENTRAL and Sands China
Can any of the company-specific risk be diversified away by investing in both BANK CENTRAL and Sands China 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 BANK CENTRAL and Sands China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK CENTRAL ASIA and Sands China, you can compare the effects of market volatilities on BANK CENTRAL and Sands China 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 BANK CENTRAL with a short position of Sands China. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK CENTRAL and Sands China.
Diversification Opportunities for BANK CENTRAL and Sands China
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between BANK and Sands is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding BANK CENTRAL ASIA and Sands China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sands China and BANK CENTRAL 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 BANK CENTRAL ASIA are associated (or correlated) with Sands China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sands China has no effect on the direction of BANK CENTRAL i.e., BANK CENTRAL and Sands China go up and down completely randomly.
Pair Corralation between BANK CENTRAL and Sands China
Assuming the 90 days trading horizon BANK CENTRAL ASIA is expected to under-perform the Sands China. But the stock apears to be less risky and, when comparing its historical volatility, BANK CENTRAL ASIA is 2.67 times less risky than Sands China. The stock trades about 0.0 of its potential returns per unit of risk. The Sands China is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 154.00 in Sands China on November 2, 2024 and sell it today you would earn a total of 68.00 from holding Sands China or generate 44.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK CENTRAL ASIA vs. Sands China
Performance |
| Timeline |
| BANK CENTRAL ASIA |
| Sands China |
BANK CENTRAL and Sands China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK CENTRAL and Sands China
The main advantage of trading using opposite BANK CENTRAL and Sands China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK CENTRAL position performs unexpectedly, Sands China 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 Sands China will offset losses from the drop in Sands China's long position.| BANK CENTRAL vs. MOVIE GAMES SA | BANK CENTRAL vs. Norwegian Air Shuttle | BANK CENTRAL vs. ePlay Digital | BANK CENTRAL vs. Delta Air Lines |
| Sands China vs. Charter Communications | Sands China vs. GEELY AUTOMOBILE | Sands China vs. SEI INVESTMENTS | Sands China vs. Keck Seng Investments |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |