Correlation Between Bound and SG Capital
Can any of the company-specific risk be diversified away by investing in both Bound and SG Capital 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 Bound and SG Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bound and Beyond and SG Capital PCL, you can compare the effects of market volatilities on Bound and SG Capital 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 Bound with a short position of SG Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bound and SG Capital.
Diversification Opportunities for Bound and SG Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bound and SGC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bound and Beyond and SG Capital PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SG Capital PCL and Bound 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 Bound and Beyond are associated (or correlated) with SG Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SG Capital PCL has no effect on the direction of Bound i.e., Bound and SG Capital go up and down completely randomly.
Pair Corralation between Bound and SG Capital
If you would invest (100.00) in SG Capital PCL on September 1, 2024 and sell it today you would earn a total of 100.00 from holding SG Capital PCL 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 |
Bound and Beyond vs. SG Capital PCL
Performance |
| Timeline |
| Bound and Beyond |
| SG Capital PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bound and SG Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bound and SG Capital
The main advantage of trading using opposite Bound and SG Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bound position performs unexpectedly, SG Capital 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 Capital will offset losses from the drop in SG Capital's long position.| Bound vs. BCPG Public | Bound vs. Aqua Public | Bound vs. Energy Absolute Public | Bound vs. Bangkok Aviation Fuel |
| SG Capital vs. Jay Mart Public | SG Capital vs. Singer Thailand Public | SG Capital vs. JMT Network Services | SG Capital vs. Muangthai Capital Public |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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