Correlation Between Sino Land and SM Prime
Can any of the company-specific risk be diversified away by investing in both Sino Land and SM Prime 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 SM Prime 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 SM Prime Holdings, you can compare the effects of market volatilities on Sino Land and SM Prime 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 SM Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Land and SM Prime.
Diversification Opportunities for Sino Land and SM Prime
Excellent diversification
The 3 months correlation between Sino and SPHXF is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sino Land Co and SM Prime Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SM Prime Holdings 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 SM Prime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SM Prime Holdings has no effect on the direction of Sino Land i.e., Sino Land and SM Prime go up and down completely randomly.
Pair Corralation between Sino Land and SM Prime
Assuming the 90 days horizon Sino Land Co is expected to generate 0.58 times more return on investment than SM Prime. However, Sino Land Co is 1.72 times less risky than SM Prime. It trades about 0.1 of its potential returns per unit of risk. SM Prime Holdings is currently generating about -0.11 per unit of risk. If you would invest 605.00 in Sino Land Co on August 17, 2025 and sell it today you would earn a total of 90.00 from holding Sino Land Co or generate 14.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Sino Land Co vs. SM Prime Holdings
Performance |
| Timeline |
| Sino Land |
| SM Prime Holdings |
Sino Land and SM Prime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Land and SM Prime
The main advantage of trading using opposite Sino Land and SM Prime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Land position performs unexpectedly, SM Prime 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 SM Prime will offset losses from the drop in SM Prime's long position.| Sino Land vs. Azrieli Group | Sino Land vs. Hongkong Land Holdings | Sino Land vs. SM Prime Holdings | Sino Land vs. China Vanke Co |
| SM Prime vs. Azrieli Group | SM Prime vs. Hongkong Land Holdings | SM Prime vs. Scentre Group | SM Prime vs. Fastighets AB Balder |
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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