Correlation Between Washington Mutual and SG Micro
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By analyzing existing cross correlation between Washington Mutual Investors and SG Micro Corp, you can compare the effects of market volatilities on Washington Mutual 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 Washington Mutual with a short position of SG Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Mutual and SG Micro.
Diversification Opportunities for Washington Mutual and SG Micro
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Washington and 300661 is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Washington Mutual Investors 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 Washington Mutual 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 Washington Mutual Investors 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 Washington Mutual i.e., Washington Mutual and SG Micro go up and down completely randomly.
Pair Corralation between Washington Mutual and SG Micro
Assuming the 90 days horizon Washington Mutual is expected to generate 3.11 times less return on investment than SG Micro. But when comparing it to its historical volatility, Washington Mutual Investors is 5.16 times less risky than SG Micro. It trades about 0.09 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 |
Washington Mutual Investors vs. SG Micro Corp
Performance |
| Timeline |
| Washington Mutual |
| SG Micro Corp |
Washington Mutual and SG Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Mutual and SG Micro
The main advantage of trading using opposite Washington Mutual and SG Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Mutual 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.| Washington Mutual vs. Amg Managers Centersquare | Washington Mutual vs. Tiaa Cref Real Estate | Washington Mutual vs. Deutsche Real Estate | Washington Mutual vs. Tiaa Cref Real Estate |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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