Correlation Between Sino Land and Icad

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

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

Diversification Opportunities for Sino Land and Icad

0.11

Correlation Coefficient

Sino Land  Icad

Average diversification

The 3 months correlation between Sino and Icad is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sino Land Co and icad inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on icad inc and Sino Land 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 Land Co are associated (or correlated) with Icad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of icad inc has no effect on the direction of Sino Land i.e., Sino Land and Icad go up and down completely randomly.

Pair Corralation between Sino Land and Icad

Assuming the 90 days horizon Sino Land Co is expected to generate 0.29 times more return on investment than Icad. However, Sino Land Co is 3.41 times less risky than Icad. It trades about 0.14 of its potential returns per unit of risk. icad inc is currently generating about 0.03 per unit of risk. If you would invest  514.00  in Sino Land Co on September 12, 2024 and sell it today you would earn a total of  31.00  from holding Sino Land Co or generate 6.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Sino Land Co  vs.  icad inc

Sino Land

Risk-Adjusted Performance

7 of 100

Modest

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 inconsistent basic indicators, Sino Land showed solid returns over the last few months and may actually be approaching a breakup point.

icad inc

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in icad inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Icad exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sino Land and Icad

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

The idea behind Sino Land Co and icad inc 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.