Correlation Between Country Group and SPCG Public
Can any of the company-specific risk be diversified away by investing in both Country Group and SPCG Public 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 Country Group and SPCG Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Country Group Holdings and SPCG Public, you can compare the effects of market volatilities on Country Group and SPCG Public 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 Country Group with a short position of SPCG Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Country Group and SPCG Public.
Diversification Opportunities for Country Group and SPCG Public
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Country and SPCG is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Country Group Holdings and SPCG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPCG Public and Country Group 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 Country Group Holdings are associated (or correlated) with SPCG Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPCG Public has no effect on the direction of Country Group i.e., Country Group and SPCG Public go up and down completely randomly.
Pair Corralation between Country Group and SPCG Public
Assuming the 90 days trading horizon Country Group Holdings is expected to generate 35.12 times more return on investment than SPCG Public. However, Country Group is 35.12 times more volatile than SPCG Public. It trades about 0.04 of its potential returns per unit of risk. SPCG Public is currently generating about -0.05 per unit of risk. If you would invest 66.00 in Country Group Holdings on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Country Group Holdings or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Country Group Holdings vs. SPCG Public
Performance |
| Timeline |
| Country Group Holdings |
| SPCG Public |
Country Group and SPCG Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Country Group and SPCG Public
The main advantage of trading using opposite Country Group and SPCG Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Country Group position performs unexpectedly, SPCG Public 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 SPCG Public will offset losses from the drop in SPCG Public's long position.| Country Group vs. Asia Plus Group | Country Group vs. Globlex Holding Management | Country Group vs. Asia Green Energy | Country Group vs. Amanah Leasing Public |
| SPCG Public vs. BCPG Public | SPCG Public vs. TPI Polene Power | SPCG Public vs. BTS Group Holdings | SPCG Public vs. Energy Absolute 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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