Correlation Between Agile Group and Sino Land

Can any of the company-specific risk be diversified away by investing in both Agile Group and Sino Land 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 Agile Group and Sino Land into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Agile Group Holdings and Sino Land Co, you can compare the effects of market volatilities on Agile Group and Sino Land 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 Agile Group with a short position of Sino Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agile Group and Sino Land.

Diversification Opportunities for Agile Group and Sino Land

0.66

Correlation Coefficient

Agile Group  Sino Land

Poor diversification

The 3 months correlation between Agile and Sino is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Agile Group Holdings and Sino Land Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Land and Agile Group 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 Agile Group Holdings are associated (or correlated) with Sino Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Land has no effect on the direction of Agile Group i.e., Agile Group and Sino Land go up and down completely randomly.

Pair Corralation between Agile Group and Sino Land

Assuming the 90 days horizon Agile Group Holdings is expected to generate 5.19 times more return on investment than Sino Land. However, Agile Group is 5.19 times more volatile than Sino Land Co. It trades about 0.02 of its potential returns per unit of risk. Sino Land Co is currently generating about 0.02 per unit of risk. If you would invest  1,437  in Agile Group Holdings on September 13, 2024 and sell it today you would lose (947.00) from holding Agile Group Holdings or give up 65.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.75%
Values	Daily Returns

Agile Group Holdings  vs.  Sino Land Co

Agile Group Holdings

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Agile Group Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Agile Group showed solid returns over the last few months and may actually be approaching a breakup point.

Sino Land

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sino Land Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Sino Land showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agile Group and Sino Land

The main advantage of trading using opposite Agile Group and Sino Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agile Group position performs unexpectedly, Sino Land 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 Sino Land will offset losses from the drop in Sino Land's long position.

The idea behind Agile Group Holdings and Sino Land Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.