Correlation Between Tamburi Investment and Swire Properties

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

By analyzing existing cross correlation between Tamburi Investment Partners and Swire Properties Limited, you can compare the effects of market volatilities on Tamburi Investment and Swire Properties 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 Tamburi Investment with a short position of Swire Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tamburi Investment and Swire Properties.

Diversification Opportunities for Tamburi Investment and Swire Properties

-0.1

Correlation Coefficient

Tamburi Investment  Swire Properties

Good diversification

The 3 months correlation between Tamburi and Swire is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Tamburi Investment Partners and Swire Properties Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swire Properties and Tamburi Investment 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 Tamburi Investment Partners are associated (or correlated) with Swire Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swire Properties has no effect on the direction of Tamburi Investment i.e., Tamburi Investment and Swire Properties go up and down completely randomly.

Pair Corralation between Tamburi Investment and Swire Properties

Assuming the 90 days horizon Tamburi Investment is expected to generate 2.53 times less return on investment than Swire Properties. In addition to that, Tamburi Investment is 1.07 times more volatile than Swire Properties Limited. It trades about 0.06 of its total potential returns per unit of risk. Swire Properties Limited is currently generating about 0.16 per unit of volatility. If you would invest  185.00  in Swire Properties Limited on April 25, 2025 and sell it today you would earn a total of  33.00  from holding Swire Properties Limited or generate 17.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Tamburi Investment Partners  vs.  Swire Properties Limited

Tamburi Investment

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Tamburi Investment Partners are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Tamburi Investment may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Swire Properties

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Swire Properties Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Swire Properties reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tamburi Investment and Swire Properties

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

The idea behind Tamburi Investment Partners and Swire Properties Limited 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.