Correlation Between Intema Solutions and SGHC
Can any of the company-specific risk be diversified away by investing in both Intema Solutions and SGHC 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 Intema Solutions and SGHC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intema Solutions and SGHC Limited, you can compare the effects of market volatilities on Intema Solutions and SGHC 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 Intema Solutions with a short position of SGHC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intema Solutions and SGHC.
Diversification Opportunities for Intema Solutions and SGHC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intema and SGHC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intema Solutions and SGHC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGHC Limited and Intema Solutions 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 Intema Solutions are associated (or correlated) with SGHC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGHC Limited has no effect on the direction of Intema Solutions i.e., Intema Solutions and SGHC go up and down completely randomly.
Pair Corralation between Intema Solutions and SGHC
If you would invest 341.00 in SGHC Limited on August 31, 2024 and sell it today you would earn a total of 332.00 from holding SGHC Limited or generate 97.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intema Solutions vs. SGHC Limited
Performance |
| Timeline |
| Intema Solutions |
| SGHC Limited |
Intema Solutions and SGHC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intema Solutions and SGHC
The main advantage of trading using opposite Intema Solutions and SGHC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intema Solutions position performs unexpectedly, SGHC 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 SGHC will offset losses from the drop in SGHC's long position.The idea behind Intema Solutions and SGHC Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| CEOs Directory Screen CEOs from public companies around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |