Correlation Between Caseys General and Sino Land
Can any of the company-specific risk be diversified away by investing in both Caseys General 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 Caseys General and Sino Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and Sino Land, you can compare the effects of market volatilities on Caseys General 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 Caseys General with a short position of Sino Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and Sino Land.
Diversification Opportunities for Caseys General and Sino Land
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Caseys and Sino is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and Sino Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Land and Caseys General 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 Caseys General Stores 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 Caseys General i.e., Caseys General and Sino Land go up and down completely randomly.
Pair Corralation between Caseys General and Sino Land
Assuming the 90 days trading horizon Caseys General is expected to generate 3.43 times less return on investment than Sino Land. But when comparing it to its historical volatility, Caseys General Stores is 3.71 times less risky than Sino Land. It trades about 0.15 of its potential returns per unit of risk. Sino Land is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 56.00 in Sino Land on August 25, 2024 and sell it today you would earn a total of 38.00 from holding Sino Land or generate 67.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caseys General Stores vs. Sino Land
Performance |
| Timeline |
| Caseys General Stores |
| Sino Land |
Caseys General and Sino Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and Sino Land
The main advantage of trading using opposite Caseys General and Sino Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General 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.| Caseys General vs. INTERSHOP Communications Aktiengesellschaft | Caseys General vs. BlueScope Steel Limited | Caseys General vs. BLUESCOPE STEEL | Caseys General vs. USWE SPORTS AB |
| Sino Land vs. MGIC INVESTMENT | Sino Land vs. JIAHUA STORES | Sino Land vs. AEON STORES | Sino Land vs. Caseys General Stores |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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