Correlation Between Homecast CoLtd and SGC Energy
Can any of the company-specific risk be diversified away by investing in both Homecast CoLtd 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 Homecast CoLtd and SGC Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Homecast CoLtd and SGC Energy Co, you can compare the effects of market volatilities on Homecast CoLtd 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 Homecast CoLtd with a short position of SGC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Homecast CoLtd and SGC Energy.
Diversification Opportunities for Homecast CoLtd and SGC Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Homecast and SGC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Homecast CoLtd and SGC Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGC Energy and Homecast CoLtd 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 Homecast CoLtd 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 Homecast CoLtd i.e., Homecast CoLtd and SGC Energy go up and down completely randomly.
Pair Corralation between Homecast CoLtd and SGC Energy
If you would invest (100.00) in SGC Energy Co on September 4, 2024 and sell it today you would earn a total of 100.00 from holding SGC Energy Co or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Homecast CoLtd vs. SGC Energy Co
Performance |
| Timeline |
| Homecast CoLtd |
| SGC Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Homecast CoLtd and SGC Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Homecast CoLtd and SGC Energy
The main advantage of trading using opposite Homecast CoLtd and SGC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Homecast CoLtd 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.| Homecast CoLtd vs. Dongsin Engineering Construction | Homecast CoLtd vs. Doosan Fuel Cell | Homecast CoLtd vs. Daishin Balance 1 | Homecast CoLtd vs. Total Soft Bank |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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