Correlation Between Sun Hung and Wharf Holdings
Can any of the company-specific risk be diversified away by investing in both Sun Hung and Wharf Holdings 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 Sun Hung and Wharf Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Hung Kai and Wharf Holdings, you can compare the effects of market volatilities on Sun Hung and Wharf Holdings 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 Sun Hung with a short position of Wharf Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Hung and Wharf Holdings.
Diversification Opportunities for Sun Hung and Wharf Holdings
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sun and Wharf is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sun Hung Kai and Wharf Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wharf Holdings and Sun Hung 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 Sun Hung Kai are associated (or correlated) with Wharf Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wharf Holdings has no effect on the direction of Sun Hung i.e., Sun Hung and Wharf Holdings go up and down completely randomly.
Pair Corralation between Sun Hung and Wharf Holdings
Assuming the 90 days horizon Sun Hung Kai is expected to under-perform the Wharf Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sun Hung Kai is 1.81 times less risky than Wharf Holdings. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Wharf Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 513.00 in Wharf Holdings on October 21, 2024 and sell it today you would earn a total of 53.00 from holding Wharf Holdings or generate 10.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.97% |
| Values | Daily Returns |
Sun Hung Kai vs. Wharf Holdings
Performance |
| Timeline |
| Sun Hung Kai |
| Wharf Holdings |
Sun Hung and Wharf Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Hung and Wharf Holdings
The main advantage of trading using opposite Sun Hung and Wharf Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Hung position performs unexpectedly, Wharf Holdings 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 Wharf Holdings will offset losses from the drop in Wharf Holdings' long position.| Sun Hung vs. Hong Kong Land | Sun Hung vs. Wharf Holdings | Sun Hung vs. Holiday Island Holdings | Sun Hung vs. Bayport International Holdings |
| Wharf Holdings vs. Sino Land Co | Wharf Holdings vs. Hong Kong Land | Wharf Holdings vs. Holiday Island Holdings | Wharf Holdings vs. Sun Hung Kai |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Transaction History View history of all your transactions and understand their impact on performance |