Correlation Between Samlip General and SGC Energy
Can any of the company-specific risk be diversified away by investing in both Samlip General and SGC Energy 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 Samlip General and SGC Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samlip General Foods and SGC Energy Co, you can compare the effects of market volatilities on Samlip General and SGC Energy 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 Samlip General with a short position of SGC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and SGC Energy.
Diversification Opportunities for Samlip General and SGC Energy
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Samlip and SGC is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and SGC Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGC Energy and Samlip General 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 Samlip General Foods are associated (or correlated) with SGC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGC Energy has no effect on the direction of Samlip General i.e., Samlip General and SGC Energy go up and down completely randomly.
Pair Corralation between Samlip General and SGC Energy
Assuming the 90 days trading horizon Samlip General Foods is expected to under-perform the SGC Energy. In addition to that, Samlip General is 1.07 times more volatile than SGC Energy Co. It trades about -0.08 of its total potential returns per unit of risk. SGC Energy Co is currently generating about -0.07 per unit of volatility. If you would invest 2,590,000 in SGC Energy Co on September 12, 2024 and sell it today you would lose (90,000) from holding SGC Energy Co or give up 3.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Samlip General Foods vs. SGC Energy Co
Performance |
| Timeline |
| Samlip General Foods |
| SGC Energy |
Samlip General and SGC Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and SGC Energy
The main advantage of trading using opposite Samlip General and SGC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General position performs unexpectedly, SGC Energy 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 SGC Energy will offset losses from the drop in SGC Energy's long position.| Samlip General vs. Samsung Electronics Co | Samlip General vs. Samsung Electronics Co | Samlip General vs. SK Hynix | Samlip General vs. POSCO Holdings |
| SGC Energy vs. Hannong Chemicals | SGC Energy vs. EBEST Investment Securities | SGC Energy vs. E Investment Development | SGC Energy vs. Daehan Synthetic Fiber |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |