Correlation Between Sino AG and Interpublic

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

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

Diversification Opportunities for Sino AG and Interpublic

-0.27

Correlation Coefficient

Sino AG  Interpublic

Very good diversification

The 3 months correlation between Sino and Interpublic is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sino AG and The Interpublic Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interpublic Group and Sino AG 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 AG are associated (or correlated) with Interpublic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interpublic Group has no effect on the direction of Sino AG i.e., Sino AG and Interpublic go up and down completely randomly.

Pair Corralation between Sino AG and Interpublic

Assuming the 90 days horizon Sino AG is expected to generate 0.86 times more return on investment than Interpublic. However, Sino AG is 1.16 times less risky than Interpublic. It trades about 0.16 of its potential returns per unit of risk. The Interpublic Group is currently generating about 0.01 per unit of risk. If you would invest  9,080  in Sino AG on April 25, 2025 and sell it today you would earn a total of  1,620  from holding Sino AG 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

Sino AG  vs.  The Interpublic Group

Sino AG

Risk-Adjusted Performance

Good

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

Interpublic Group

Risk-Adjusted Performance

Insignificant

Over the last 90 days The Interpublic Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Interpublic is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Sino AG and Interpublic

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

The idea behind Sino AG and The Interpublic Group 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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.