Correlation Between Fecon Mining and SCG Construction
Can any of the company-specific risk be diversified away by investing in both Fecon Mining and SCG Construction 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 Fecon Mining and SCG Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fecon Mining JSC and SCG Construction JSC, you can compare the effects of market volatilities on Fecon Mining and SCG Construction 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 Fecon Mining with a short position of SCG Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fecon Mining and SCG Construction.
Diversification Opportunities for Fecon Mining and SCG Construction
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fecon and SCG is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fecon Mining JSC and SCG Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCG Construction JSC and Fecon Mining 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 Fecon Mining JSC are associated (or correlated) with SCG Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCG Construction JSC has no effect on the direction of Fecon Mining i.e., Fecon Mining and SCG Construction go up and down completely randomly.
Pair Corralation between Fecon Mining and SCG Construction
Assuming the 90 days trading horizon Fecon Mining JSC is expected to under-perform the SCG Construction. In addition to that, Fecon Mining is 4.23 times more volatile than SCG Construction JSC. It trades about -0.14 of its total potential returns per unit of risk. SCG Construction JSC is currently generating about 0.01 per unit of volatility. If you would invest 6,540,000 in SCG Construction JSC on September 3, 2024 and sell it today you would earn a total of 30,000 from holding SCG Construction JSC or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fecon Mining JSC vs. SCG Construction JSC
Performance |
| Timeline |
| Fecon Mining JSC |
| SCG Construction JSC |
Fecon Mining and SCG Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fecon Mining and SCG Construction
The main advantage of trading using opposite Fecon Mining and SCG Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fecon Mining position performs unexpectedly, SCG Construction 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 SCG Construction will offset losses from the drop in SCG Construction's long position.| Fecon Mining vs. FIT INVEST JSC | Fecon Mining vs. Damsan JSC | Fecon Mining vs. An Phat Plastic | Fecon Mining vs. Alphanam ME |
| SCG Construction vs. FIT INVEST JSC | SCG Construction vs. Damsan JSC | SCG Construction vs. An Phat Plastic | SCG Construction vs. Alphanam ME |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |