Correlation Between Sack Lunch and SGS SA
Can any of the company-specific risk be diversified away by investing in both Sack Lunch and SGS SA 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 Sack Lunch and SGS SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sack Lunch Productions and SGS SA, you can compare the effects of market volatilities on Sack Lunch and SGS SA 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 Sack Lunch with a short position of SGS SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sack Lunch and SGS SA.
Diversification Opportunities for Sack Lunch and SGS SA
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sack and SGS is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sack Lunch Productions and SGS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGS SA and Sack Lunch 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 Sack Lunch Productions are associated (or correlated) with SGS SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGS SA has no effect on the direction of Sack Lunch i.e., Sack Lunch and SGS SA go up and down completely randomly.
Pair Corralation between Sack Lunch and SGS SA
Given the investment horizon of 90 days Sack Lunch Productions is expected to generate 8.82 times more return on investment than SGS SA. However, Sack Lunch is 8.82 times more volatile than SGS SA. It trades about 0.16 of its potential returns per unit of risk. SGS SA is currently generating about -0.32 per unit of risk. If you would invest 0.60 in Sack Lunch Productions on August 27, 2024 and sell it today you would earn a total of 0.20 from holding Sack Lunch Productions or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sack Lunch Productions vs. SGS SA
Performance |
| Timeline |
| Sack Lunch Productions |
| SGS SA |
Sack Lunch and SGS SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sack Lunch and SGS SA
The main advantage of trading using opposite Sack Lunch and SGS SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sack Lunch position performs unexpectedly, SGS SA 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 SGS SA will offset losses from the drop in SGS SA's long position.| Sack Lunch vs. Aerius International | Sack Lunch vs. Potash America | Sack Lunch vs. Blue Diamond Ventures | Sack Lunch vs. Daniels Corporate Advisory |
| SGS SA vs. Sack Lunch Productions | SGS SA vs. Potash America | SGS SA vs. Dalrada Financial Corp | SGS SA vs. TransUnion |
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.
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