Correlation Between American Balanced and SG Micro
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By analyzing existing cross correlation between American Balanced and SG Micro Corp, you can compare the effects of market volatilities on American Balanced and SG Micro 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 American Balanced with a short position of SG Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Balanced and SG Micro.
Diversification Opportunities for American Balanced and SG Micro
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and 300661 is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding American Balanced and SG Micro Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SG Micro Corp and American Balanced 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 American Balanced are associated (or correlated) with SG Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SG Micro Corp has no effect on the direction of American Balanced i.e., American Balanced and SG Micro go up and down completely randomly.
Pair Corralation between American Balanced and SG Micro
Assuming the 90 days horizon American Balanced is expected to generate 5.14 times less return on investment than SG Micro. But when comparing it to its historical volatility, American Balanced is 6.25 times less risky than SG Micro. It trades about 0.07 of its potential returns per unit of risk. SG Micro Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,108 in SG Micro Corp on November 3, 2024 and sell it today you would earn a total of 1,333 from holding SG Micro Corp or generate 18.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.97% |
| Values | Daily Returns |
American Balanced vs. SG Micro Corp
Performance |
| Timeline |
| American Balanced |
| SG Micro Corp |
American Balanced and SG Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Balanced and SG Micro
The main advantage of trading using opposite American Balanced and SG Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Balanced position performs unexpectedly, SG Micro 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 SG Micro will offset losses from the drop in SG Micro's long position.| American Balanced vs. Income Fund Of | American Balanced vs. Capital Income Builder | American Balanced vs. Capital World Growth | American Balanced vs. Growth Fund Of |
| SG Micro vs. Tangel Publishing | SG Micro vs. Qtone Education Group | SG Micro vs. Jiangsu Phoenix Publishing | SG Micro vs. Soyea Technology 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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