Correlation Between UDR and SINOPHARM GROUP
Can any of the company-specific risk be diversified away by investing in both UDR and SINOPHARM GROUP 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 UDR and SINOPHARM GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UDR Inc and SINOPHARM GROUP LTD, you can compare the effects of market volatilities on UDR and SINOPHARM GROUP 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 UDR with a short position of SINOPHARM GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of UDR and SINOPHARM GROUP.
Diversification Opportunities for UDR and SINOPHARM GROUP
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UDR and SINOPHARM is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding UDR Inc and SINOPHARM GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINOPHARM GROUP LTD and UDR 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 UDR Inc are associated (or correlated) with SINOPHARM GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINOPHARM GROUP LTD has no effect on the direction of UDR i.e., UDR and SINOPHARM GROUP go up and down completely randomly.
Pair Corralation between UDR and SINOPHARM GROUP
Considering the 90-day investment horizon UDR Inc is expected to generate 0.46 times more return on investment than SINOPHARM GROUP. However, UDR Inc is 2.16 times less risky than SINOPHARM GROUP. It trades about 0.47 of its potential returns per unit of risk. SINOPHARM GROUP LTD is currently generating about 0.16 per unit of risk. If you would invest 4,130 in UDR Inc on September 2, 2024 and sell it today you would earn a total of 456.00 from holding UDR Inc or generate 11.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UDR Inc vs. SINOPHARM GROUP LTD
Performance |
| Timeline |
| UDR Inc |
| SINOPHARM GROUP LTD |
UDR and SINOPHARM GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UDR and SINOPHARM GROUP
The main advantage of trading using opposite UDR and SINOPHARM GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UDR position performs unexpectedly, SINOPHARM GROUP 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 SINOPHARM GROUP will offset losses from the drop in SINOPHARM GROUP's long position.| UDR vs. AvalonBay Communities | UDR vs. Essex Property Trust | UDR vs. Mid America Apartment Communities | UDR vs. Camden Property Trust |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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