Correlation Between Sino AG and TOYO
Can any of the company-specific risk be diversified away by investing in both Sino AG and TOYO 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 AG and TOYO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sino AG and TOYO Corporation, you can compare the effects of market volatilities on Sino AG and TOYO 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 AG with a short position of TOYO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino AG and TOYO.
Diversification Opportunities for Sino AG and TOYO
Excellent diversification
The 3 months correlation between Sino and TOYO is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sino AG and TOYO Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOYO and Sino AG 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 AG are associated (or correlated) with TOYO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOYO has no effect on the direction of Sino AG i.e., Sino AG and TOYO go up and down completely randomly.
Pair Corralation between Sino AG and TOYO
Assuming the 90 days horizon Sino AG is expected to generate 1.73 times more return on investment than TOYO. However, Sino AG is 1.73 times more volatile than TOYO Corporation. It trades about 0.37 of its potential returns per unit of risk. TOYO Corporation is currently generating about -0.11 per unit of risk. If you would invest 5,350 in Sino AG on August 31, 2024 and sell it today you would earn a total of 1,150 from holding Sino AG or generate 21.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino AG vs. TOYO Corp.
Performance |
| Timeline |
| Sino AG |
| TOYO |
Sino AG and TOYO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino AG and TOYO
The main advantage of trading using opposite Sino AG and TOYO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino AG position performs unexpectedly, TOYO 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 TOYO will offset losses from the drop in TOYO's long position.| Sino AG vs. Morgan Stanley | Sino AG vs. The Goldman Sachs | Sino AG vs. Superior Plus Corp | Sino AG vs. NMI Holdings |
| TOYO vs. BE Semiconductor Industries | TOYO vs. DFS Furniture PLC | TOYO vs. Addus HomeCare | TOYO vs. MAVEN WIRELESS SWEDEN |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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