Correlation Between TSOGO SUN and Sands China
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN 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 TSOGO SUN and Sands China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSOGO SUN GAMING and Sands China, you can compare the effects of market volatilities on TSOGO SUN 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 TSOGO SUN with a short position of Sands China. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and Sands China.
Diversification Opportunities for TSOGO SUN and Sands China
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TSOGO and Sands is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and Sands China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sands China and TSOGO SUN 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 TSOGO SUN GAMING 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 TSOGO SUN i.e., TSOGO SUN and Sands China go up and down completely randomly.
Pair Corralation between TSOGO SUN and Sands China
Assuming the 90 days horizon TSOGO SUN GAMING is expected to generate 1.19 times more return on investment than Sands China. However, TSOGO SUN is 1.19 times more volatile than Sands China. It trades about -0.22 of its potential returns per unit of risk. Sands China is currently generating about -0.55 per unit of risk. If you would invest 51.00 in TSOGO SUN GAMING on October 21, 2024 and sell it today you would lose (4.00) from holding TSOGO SUN GAMING or give up 7.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. Sands China
Performance |
| Timeline |
| TSOGO SUN GAMING |
| Sands China |
TSOGO SUN and Sands China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and Sands China
The main advantage of trading using opposite TSOGO SUN and Sands China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN 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.| TSOGO SUN vs. Easy Software AG | TSOGO SUN vs. Methode Electronics | TSOGO SUN vs. GLG LIFE TECH | TSOGO SUN vs. Agilent Technologies |
| Sands China vs. Las Vegas Sands | Sands China vs. Galaxy Entertainment Group | Sands China vs. MGM Resorts International | Sands China vs. Wynn Resorts Limited |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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