Correlation Between SAG Holdings and Xpel
Can any of the company-specific risk be diversified away by investing in both SAG Holdings and Xpel 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 Xpel 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 Xpel Inc, you can compare the effects of market volatilities on SAG Holdings and Xpel 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 Xpel. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAG Holdings and Xpel.
Diversification Opportunities for SAG Holdings and Xpel
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SAG and Xpel is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SAG Holdings Limited and Xpel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xpel Inc 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 Xpel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xpel Inc has no effect on the direction of SAG Holdings i.e., SAG Holdings and Xpel go up and down completely randomly.
Pair Corralation between SAG Holdings and Xpel
Considering the 90-day investment horizon SAG Holdings Limited is expected to under-perform the Xpel. In addition to that, SAG Holdings is 3.3 times more volatile than Xpel Inc. It trades about -0.45 of its total potential returns per unit of risk. Xpel Inc is currently generating about 0.21 per unit of volatility. If you would invest 4,036 in Xpel Inc on August 23, 2024 and sell it today you would earn a total of 449.00 from holding Xpel Inc or generate 11.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SAG Holdings Limited vs. Xpel Inc
Performance |
| Timeline |
| SAG Holdings Limited |
| Xpel Inc |
SAG Holdings and Xpel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAG Holdings and Xpel
The main advantage of trading using opposite SAG Holdings and Xpel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAG Holdings position performs unexpectedly, Xpel 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 Xpel will offset losses from the drop in Xpel's long position.| SAG Holdings vs. FTAI Infrastructure | SAG Holdings vs. Synnex | SAG Holdings vs. Universal Security Instruments | SAG Holdings vs. WESCO International |
| Xpel vs. Dorman Products | Xpel vs. Standard Motor Products | Xpel vs. Motorcar Parts of | Xpel vs. Stoneridge |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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