Correlation Between Synnex Public and Heng Leasing
Can any of the company-specific risk be diversified away by investing in both Synnex Public and Heng Leasing 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 Synnex Public and Heng Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synnex Public and Heng Leasing Capital, you can compare the effects of market volatilities on Synnex Public and Heng Leasing 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 Synnex Public with a short position of Heng Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synnex Public and Heng Leasing.
Diversification Opportunities for Synnex Public and Heng Leasing
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Synnex and Heng is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Synnex Public and Heng Leasing Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heng Leasing Capital and Synnex Public 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 Synnex Public are associated (or correlated) with Heng Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heng Leasing Capital has no effect on the direction of Synnex Public i.e., Synnex Public and Heng Leasing go up and down completely randomly.
Pair Corralation between Synnex Public and Heng Leasing
Assuming the 90 days trading horizon Synnex Public is expected to generate 0.93 times more return on investment than Heng Leasing. However, Synnex Public is 1.07 times less risky than Heng Leasing. It trades about 0.04 of its potential returns per unit of risk. Heng Leasing Capital is currently generating about -0.52 per unit of risk. If you would invest 1,550 in Synnex Public on August 30, 2024 and sell it today you would earn a total of 20.00 from holding Synnex Public or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synnex Public vs. Heng Leasing Capital
Performance |
| Timeline |
| Synnex Public |
| Heng Leasing Capital |
Synnex Public and Heng Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synnex Public and Heng Leasing
The main advantage of trading using opposite Synnex Public and Heng Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synnex Public position performs unexpectedly, Heng Leasing 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 Heng Leasing will offset losses from the drop in Heng Leasing's long position.| Synnex Public vs. Com7 PCL | Synnex Public vs. Jay Mart Public | Synnex Public vs. SiS Distribution Public | Synnex Public vs. KCE Electronics Public |
| Heng Leasing vs. Amanah Leasing Public | Heng Leasing vs. Infraset Public | Heng Leasing vs. JMT Network Services |
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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