Correlation Between SM Prime and Sino Land

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Can any of the company-specific risk be diversified away by investing in both SM Prime 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 SM Prime and Sino Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SM Prime Holdings and Sino Land Co, you can compare the effects of market volatilities on SM Prime 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 SM Prime with a short position of Sino Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of SM Prime and Sino Land.

Diversification Opportunities for SM Prime and Sino Land

-0.59
  Correlation Coefficient

Excellent diversification

The 3 months correlation between SPHXF and Sino is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SM Prime 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 SM Prime 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 SM Prime 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 SM Prime i.e., SM Prime and Sino Land go up and down completely randomly.

Pair Corralation between SM Prime and Sino Land

Assuming the 90 days horizon SM Prime Holdings is expected to under-perform the Sino Land. In addition to that, SM Prime is 1.51 times more volatile than Sino Land Co. It trades about -0.11 of its total potential returns per unit of risk. Sino Land Co is currently generating about 0.04 per unit of volatility. If you would invest  592.00  in Sino Land Co on September 1, 2025 and sell it today you would earn a total of  33.00  from holding Sino Land Co or generate 5.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy98.46%
ValuesDaily Returns

SM Prime Holdings  vs.  Sino Land Co

 Performance 
       Timeline  
SM Prime Holdings 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days SM Prime Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
Sino Land 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Sino Land Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Sino Land may actually be approaching a critical reversion point that can send shares even higher in December 2025.

SM Prime and Sino Land Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SM Prime and Sino Land

The main advantage of trading using opposite SM Prime and Sino Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SM Prime 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 SM Prime 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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