Correlation Between SGI Enhanced and FT Vest
Can any of the company-specific risk be diversified away by investing in both SGI Enhanced and FT Vest 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 SGI Enhanced and FT Vest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SGI Enhanced Nasdaq 100 and FT Vest Equity, you can compare the effects of market volatilities on SGI Enhanced and FT Vest 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 SGI Enhanced with a short position of FT Vest. Check out your portfolio center. Please also check ongoing floating volatility patterns of SGI Enhanced and FT Vest.
Diversification Opportunities for SGI Enhanced and FT Vest
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between SGI and DHDG is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SGI Enhanced Nasdaq 100 and FT Vest Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FT Vest Equity and SGI Enhanced 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 SGI Enhanced Nasdaq 100 are associated (or correlated) with FT Vest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FT Vest Equity has no effect on the direction of SGI Enhanced i.e., SGI Enhanced and FT Vest go up and down completely randomly.
Pair Corralation between SGI Enhanced and FT Vest
Considering the 90-day investment horizon SGI Enhanced Nasdaq 100 is expected to generate 3.61 times more return on investment than FT Vest. However, SGI Enhanced is 3.61 times more volatile than FT Vest Equity. It trades about 0.12 of its potential returns per unit of risk. FT Vest Equity is currently generating about 0.2 per unit of risk. If you would invest 2,668 in SGI Enhanced Nasdaq 100 on September 13, 2024 and sell it today you would earn a total of 186.00 from holding SGI Enhanced Nasdaq 100 or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.05% |
| Values | Daily Returns |
SGI Enhanced Nasdaq 100 vs. FT Vest Equity
Performance |
| Timeline |
| SGI Enhanced Nasdaq |
| FT Vest Equity |
SGI Enhanced and FT Vest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SGI Enhanced and FT Vest
The main advantage of trading using opposite SGI Enhanced and FT Vest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SGI Enhanced position performs unexpectedly, FT Vest 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 FT Vest will offset losses from the drop in FT Vest's long position.| SGI Enhanced vs. Global X SP | SGI Enhanced vs. Amplify CWP Enhanced | SGI Enhanced vs. JPMorgan Nasdaq Equity | SGI Enhanced vs. NEOS ETF Trust |
| FT Vest vs. Northern Lights | FT Vest vs. Dimensional International High | FT Vest vs. JPMorgan Fundamental Data | FT Vest vs. Matthews China Discovery |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| CEOs Directory Screen CEOs from public companies around the world |