Correlation Between O I and SAG Holdings
Can any of the company-specific risk be diversified away by investing in both O I and SAG Holdings 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 O I and SAG Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between O I Glass and SAG Holdings Limited, you can compare the effects of market volatilities on O I and SAG Holdings 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 O I with a short position of SAG Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of O I and SAG Holdings.
Diversification Opportunities for O I and SAG Holdings
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between O I and SAG is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding O I Glass and SAG Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAG Holdings Limited and O I 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 O I Glass are associated (or correlated) with SAG Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAG Holdings Limited has no effect on the direction of O I i.e., O I and SAG Holdings go up and down completely randomly.
Pair Corralation between O I and SAG Holdings
Allowing for the 90-day total investment horizon O I Glass is expected to generate 0.47 times more return on investment than SAG Holdings. However, O I Glass is 2.14 times less risky than SAG Holdings. It trades about 0.04 of its potential returns per unit of risk. SAG Holdings Limited is currently generating about -0.36 per unit of risk. If you would invest 1,274 in O I Glass on August 27, 2024 and sell it today you would earn a total of 23.00 from holding O I Glass or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
O I Glass vs. SAG Holdings Limited
Performance |
| Timeline |
| O I Glass |
| SAG Holdings Limited |
O I and SAG Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with O I and SAG Holdings
The main advantage of trading using opposite O I and SAG Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if O I position performs unexpectedly, SAG Holdings 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 SAG Holdings will offset losses from the drop in SAG Holdings' long position.The idea behind O I Glass and SAG Holdings 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.| SAG Holdings vs. Ingram Micro Holding | SAG Holdings vs. Hewlett Packard Enterprise | SAG Holdings vs. Global Partners LP | SAG Holdings vs. WESCO International |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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