Correlation Between GemVaxKAEL CoLtd and SGA Solutions
Can any of the company-specific risk be diversified away by investing in both GemVaxKAEL CoLtd and SGA Solutions 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 GemVaxKAEL CoLtd and SGA Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GemVaxKAEL CoLtd and SGA Solutions CoLtd, you can compare the effects of market volatilities on GemVaxKAEL CoLtd and SGA Solutions 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 GemVaxKAEL CoLtd with a short position of SGA Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of GemVaxKAEL CoLtd and SGA Solutions.
Diversification Opportunities for GemVaxKAEL CoLtd and SGA Solutions
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between GemVaxKAEL and SGA is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding GemVaxKAEL CoLtd and SGA Solutions CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGA Solutions CoLtd and GemVaxKAEL 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 GemVaxKAEL CoLtd are associated (or correlated) with SGA Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGA Solutions CoLtd has no effect on the direction of GemVaxKAEL CoLtd i.e., GemVaxKAEL CoLtd and SGA Solutions go up and down completely randomly.
Pair Corralation between GemVaxKAEL CoLtd and SGA Solutions
Assuming the 90 days trading horizon GemVaxKAEL CoLtd is expected to generate 2.12 times more return on investment than SGA Solutions. However, GemVaxKAEL CoLtd is 2.12 times more volatile than SGA Solutions CoLtd. It trades about 0.19 of its potential returns per unit of risk. SGA Solutions CoLtd is currently generating about 0.03 per unit of risk. If you would invest 1,208,000 in GemVaxKAEL CoLtd on October 16, 2024 and sell it today you would earn a total of 556,000 from holding GemVaxKAEL CoLtd or generate 46.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GemVaxKAEL CoLtd vs. SGA Solutions CoLtd
Performance |
| Timeline |
| GemVaxKAEL CoLtd |
| SGA Solutions CoLtd |
GemVaxKAEL CoLtd and SGA Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GemVaxKAEL CoLtd and SGA Solutions
The main advantage of trading using opposite GemVaxKAEL CoLtd and SGA Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GemVaxKAEL CoLtd position performs unexpectedly, SGA Solutions 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 SGA Solutions will offset losses from the drop in SGA Solutions' long position.| GemVaxKAEL CoLtd vs. Golden Bridge Investment | GemVaxKAEL CoLtd vs. Wireless Power Amplifier | GemVaxKAEL CoLtd vs. Neungyule Education | GemVaxKAEL CoLtd vs. Automobile Pc |
| SGA Solutions vs. KMH Hitech Co | SGA Solutions vs. GemVaxKAEL CoLtd | SGA Solutions vs. Bosung Power Technology | SGA Solutions vs. Busan Industrial Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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