Correlation Between SG Micro and Cultural Investment
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By analyzing existing cross correlation between SG Micro Corp and Cultural Investment Holdings, you can compare the effects of market volatilities on SG Micro and Cultural Investment 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 SG Micro with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SG Micro and Cultural Investment.
Diversification Opportunities for SG Micro and Cultural Investment
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 300661 and Cultural is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding SG Micro Corp and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and SG Micro 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 SG Micro Corp are associated (or correlated) with Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of SG Micro i.e., SG Micro and Cultural Investment go up and down completely randomly.
Pair Corralation between SG Micro and Cultural Investment
Assuming the 90 days trading horizon SG Micro Corp is expected to under-perform the Cultural Investment. But the stock apears to be less risky and, when comparing its historical volatility, SG Micro Corp is 1.29 times less risky than Cultural Investment. The stock trades about -0.02 of its potential returns per unit of risk. The Cultural Investment Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 239.00 in Cultural Investment Holdings on September 5, 2024 and sell it today you would lose (14.00) from holding Cultural Investment Holdings or give up 5.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SG Micro Corp vs. Cultural Investment Holdings
Performance |
| Timeline |
| SG Micro Corp |
| Cultural Investment |
SG Micro and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SG Micro and Cultural Investment
The main advantage of trading using opposite SG Micro and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SG Micro position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| SG Micro vs. Cultural Investment Holdings | SG Micro vs. Gome Telecom Equipment | SG Micro vs. Bus Online Co | SG Micro vs. Holitech Technology Co |
| Cultural Investment vs. Anhui Gujing Distillery | Cultural Investment vs. Shandong Sinoglory Health | Cultural Investment vs. Shanghai Jinfeng Wine | Cultural Investment vs. Everjoy Health Group |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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