Correlation Between Infraset Public and SGF Capital
Can any of the company-specific risk be diversified away by investing in both Infraset Public 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 Infraset Public and SGF Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infraset Public and SGF Capital Public, you can compare the effects of market volatilities on Infraset Public 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 Infraset Public with a short position of SGF Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infraset Public and SGF Capital.
Diversification Opportunities for Infraset Public and SGF Capital
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Infraset and SGF is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Infraset Public 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 Infraset 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 Infraset Public 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 Infraset Public i.e., Infraset Public and SGF Capital go up and down completely randomly.
Pair Corralation between Infraset Public and SGF Capital
Assuming the 90 days trading horizon Infraset Public is expected to generate 1.12 times more return on investment than SGF Capital. However, Infraset Public is 1.12 times more volatile than SGF Capital Public. It trades about -0.02 of its potential returns per unit of risk. SGF Capital Public is currently generating about -0.22 per unit of risk. If you would invest 330.00 in Infraset Public on August 31, 2024 and sell it today you would lose (12.00) from holding Infraset Public or give up 3.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Infraset Public vs. SGF Capital Public
Performance |
| Timeline |
| Infraset Public |
| SGF Capital Public |
Infraset Public and SGF Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infraset Public and SGF Capital
The main advantage of trading using opposite Infraset Public and SGF Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infraset Public 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.| Infraset Public vs. Interlink Telecom Public | Infraset Public vs. Internet Thailand Public | Infraset Public vs. Humanica Public | Infraset Public vs. Hana Microelectronics Public |
| SGF Capital vs. East Coast Furnitech | SGF Capital vs. Filter Vision Public | SGF Capital vs. Cho Thavee Public | SGF Capital vs. Akkhie Prakarn 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |