Correlation Between SAG Holdings and Ingram Micro
Can any of the company-specific risk be diversified away by investing in both SAG Holdings and Ingram Micro 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 SAG Holdings and Ingram Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAG Holdings Limited and Ingram Micro Holding, you can compare the effects of market volatilities on SAG Holdings and Ingram Micro 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 SAG Holdings with a short position of Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAG Holdings and Ingram Micro.
Diversification Opportunities for SAG Holdings and Ingram Micro
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SAG and Ingram is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding SAG Holdings Limited and Ingram Micro Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro Holding and SAG Holdings 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 SAG Holdings Limited are associated (or correlated) with Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro Holding has no effect on the direction of SAG Holdings i.e., SAG Holdings and Ingram Micro go up and down completely randomly.
Pair Corralation between SAG Holdings and Ingram Micro
Considering the 90-day investment horizon SAG Holdings Limited is expected to under-perform the Ingram Micro. In addition to that, SAG Holdings is 4.34 times more volatile than Ingram Micro Holding. It trades about -0.36 of its total potential returns per unit of risk. Ingram Micro Holding is currently generating about -0.23 per unit of volatility. If you would invest 2,401 in Ingram Micro Holding on August 27, 2024 and sell it today you would lose (201.00) from holding Ingram Micro Holding or give up 8.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAG Holdings Limited vs. Ingram Micro Holding
Performance |
| Timeline |
| SAG Holdings Limited |
| Ingram Micro Holding |
SAG Holdings and Ingram Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAG Holdings and Ingram Micro
The main advantage of trading using opposite SAG Holdings and Ingram Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAG Holdings position performs unexpectedly, Ingram Micro 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 Ingram Micro will offset losses from the drop in Ingram Micro's long position.| SAG Holdings vs. Ingram Micro Holding | SAG Holdings vs. Hewlett Packard Enterprise | SAG Holdings vs. Global Partners LP | SAG Holdings vs. WESCO International |
| Ingram Micro vs. Arrow Electronics | Ingram Micro vs. Avnet Inc | Ingram Micro vs. ICZOOM Group Class | Ingram Micro vs. Synnex |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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