Correlation Between Forth Smart and SGF Capital
Can any of the company-specific risk be diversified away by investing in both Forth Smart and SGF 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 Forth Smart and SGF Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forth Smart Service and SGF Capital Public, you can compare the effects of market volatilities on Forth Smart and SGF 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 Forth Smart with a short position of SGF Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forth Smart and SGF Capital.
Diversification Opportunities for Forth Smart and SGF Capital
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Forth and SGF is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Forth Smart Service and SGF Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGF Capital Public and Forth Smart 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 Forth Smart Service are associated (or correlated) with SGF Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGF Capital Public has no effect on the direction of Forth Smart i.e., Forth Smart and SGF Capital go up and down completely randomly.
Pair Corralation between Forth Smart and SGF Capital
Assuming the 90 days trading horizon Forth Smart Service is expected to under-perform the SGF Capital. But the stock apears to be less risky and, when comparing its historical volatility, Forth Smart Service is 14.9 times less risky than SGF Capital. The stock trades about -0.01 of its potential returns per unit of risk. The SGF Capital Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 74.00 in SGF Capital Public on September 13, 2024 and sell it today you would lose (50.00) from holding SGF Capital Public or give up 67.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Forth Smart Service vs. SGF Capital Public
Performance |
| Timeline |
| Forth Smart Service |
| SGF Capital Public |
Forth Smart and SGF Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forth Smart and SGF Capital
The main advantage of trading using opposite Forth Smart and SGF Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forth Smart position performs unexpectedly, SGF 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 SGF Capital will offset losses from the drop in SGF Capital's long position.| Forth Smart vs. Forth Public | Forth Smart vs. Hana Microelectronics Public | Forth Smart vs. AP Public | Forth Smart vs. Home Product Center |
| SGF Capital vs. Power Solution Technologies | SGF Capital vs. RS Public | SGF Capital vs. Siam Steel International | SGF Capital vs. RPCG 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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