Correlation Between SAG Holdings and WESCO International
Can any of the company-specific risk be diversified away by investing in both SAG Holdings and WESCO International 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 WESCO International 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 WESCO International, you can compare the effects of market volatilities on SAG Holdings and WESCO International 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 WESCO International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAG Holdings and WESCO International.
Diversification Opportunities for SAG Holdings and WESCO International
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between SAG and WESCO is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding SAG Holdings Limited and WESCO International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESCO International 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 WESCO International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESCO International has no effect on the direction of SAG Holdings i.e., SAG Holdings and WESCO International go up and down completely randomly.
Pair Corralation between SAG Holdings and WESCO International
Considering the 90-day investment horizon SAG Holdings Limited is expected to under-perform the WESCO International. In addition to that, SAG Holdings is 59.67 times more volatile than WESCO International. It trades about -0.44 of its total potential returns per unit of risk. WESCO International is currently generating about 0.22 per unit of volatility. If you would invest 2,594 in WESCO International on August 24, 2024 and sell it today you would earn a total of 17.00 from holding WESCO International or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAG Holdings Limited vs. WESCO International
Performance |
| Timeline |
| SAG Holdings Limited |
| WESCO International |
SAG Holdings and WESCO International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAG Holdings and WESCO International
The main advantage of trading using opposite SAG Holdings and WESCO International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAG Holdings position performs unexpectedly, WESCO International 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 WESCO International will offset losses from the drop in WESCO International's long position.| SAG Holdings vs. Summit Hotel Properties | SAG Holdings vs. Boot Barn Holdings | SAG Holdings vs. Lululemon Athletica | SAG Holdings vs. The Cheesecake Factory |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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