Correlation Between Sino Land and Hang Lung
Can any of the company-specific risk be diversified away by investing in both Sino Land and Hang Lung 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 Sino Land and Hang Lung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sino Land Co and Hang Lung Properties, you can compare the effects of market volatilities on Sino Land and Hang Lung 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 Sino Land with a short position of Hang Lung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Land and Hang Lung.
Diversification Opportunities for Sino Land and Hang Lung
Very weak diversification
The 3 months correlation between Sino and Hang is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sino Land Co and Hang Lung Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Lung Properties and Sino Land 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 Sino Land Co are associated (or correlated) with Hang Lung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Lung Properties has no effect on the direction of Sino Land i.e., Sino Land and Hang Lung go up and down completely randomly.
Pair Corralation between Sino Land and Hang Lung
Assuming the 90 days horizon Sino Land Co is expected to generate 0.74 times more return on investment than Hang Lung. However, Sino Land Co is 1.35 times less risky than Hang Lung. It trades about 0.02 of its potential returns per unit of risk. Hang Lung Properties is currently generating about -0.02 per unit of risk. If you would invest 477.00 in Sino Land Co on November 3, 2024 and sell it today you would earn a total of 18.00 from holding Sino Land Co or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.16% |
| Values | Daily Returns |
Sino Land Co vs. Hang Lung Properties
Performance |
| Timeline |
| Sino Land |
| Hang Lung Properties |
Sino Land and Hang Lung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Land and Hang Lung
The main advantage of trading using opposite Sino Land and Hang Lung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Land position performs unexpectedly, Hang Lung 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 Hang Lung will offset losses from the drop in Hang Lung's long position.| Sino Land vs. Wharf Holdings | Sino Land vs. Hong Kong Land | Sino Land vs. Sun Hung Kai | Sino Land vs. International Land Alliance |
| Hang Lung vs. Ascendas India Trust | Hang Lung vs. Asia Pptys | Hang Lung vs. Adler Group SA | Hang Lung vs. Aztec Land Comb |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets |