Correlation Between Ditto Public and SPCG Public
Can any of the company-specific risk be diversified away by investing in both Ditto Public 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 Ditto Public and SPCG Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ditto Public and SPCG Public, you can compare the effects of market volatilities on Ditto Public 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 Ditto Public with a short position of SPCG Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ditto Public and SPCG Public.
Diversification Opportunities for Ditto Public and SPCG Public
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ditto and SPCG is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ditto Public and SPCG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPCG Public and Ditto Public 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 Ditto Public 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 Ditto Public i.e., Ditto Public and SPCG Public go up and down completely randomly.
Pair Corralation between Ditto Public and SPCG Public
Assuming the 90 days trading horizon Ditto Public is expected to under-perform the SPCG Public. In addition to that, Ditto Public is 2.78 times more volatile than SPCG Public. It trades about -0.05 of its total potential returns per unit of risk. SPCG Public is currently generating about -0.05 per unit of volatility. If you would invest 1,202 in SPCG Public on September 4, 2024 and sell it today you would lose (352.00) from holding SPCG Public or give up 29.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ditto Public vs. SPCG Public
Performance |
| Timeline |
| Ditto Public |
| SPCG Public |
Ditto Public and SPCG Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ditto Public and SPCG Public
The main advantage of trading using opposite Ditto Public and SPCG Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ditto Public 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.| Ditto Public vs. Dohome Public | Ditto Public vs. Beryl 8 Plus | Ditto Public vs. Forth Public | Ditto Public vs. Delta Electronics 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |