Correlation Between SCCG and Sachem Capital
Can any of the company-specific risk be diversified away by investing in both SCCG and Sachem Capital 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 SCCG and Sachem Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCCG and Sachem Capital Corp, you can compare the effects of market volatilities on SCCG and Sachem Capital 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 SCCG with a short position of Sachem Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCCG and Sachem Capital.
Diversification Opportunities for SCCG and Sachem Capital
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SCCG and Sachem is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding SCCG and Sachem Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sachem Capital Corp and SCCG 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 SCCG are associated (or correlated) with Sachem Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sachem Capital Corp has no effect on the direction of SCCG i.e., SCCG and Sachem Capital go up and down completely randomly.
Pair Corralation between SCCG and Sachem Capital
Given the investment horizon of 90 days SCCG is expected to under-perform the Sachem Capital. In addition to that, SCCG is 1.52 times more volatile than Sachem Capital Corp. It trades about -0.28 of its total potential returns per unit of risk. Sachem Capital Corp is currently generating about -0.31 per unit of volatility. If you would invest 2,257 in Sachem Capital Corp on August 28, 2024 and sell it today you would lose (153.00) from holding Sachem Capital Corp or give up 6.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCCG vs. Sachem Capital Corp
Performance |
| Timeline |
| SCCG |
| Sachem Capital Corp |
SCCG and Sachem Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCCG and Sachem Capital
The main advantage of trading using opposite SCCG and Sachem Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCCG position performs unexpectedly, Sachem Capital 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 Sachem Capital will offset losses from the drop in Sachem Capital's long position.| SCCG vs. Sachem Capital Corp | SCCG vs. Babcock Wilcox Enterprises, | SCCG vs. B Riley Financial, | SCCG vs. B Riley Financial |
| Sachem Capital vs. SCCG | Sachem Capital vs. B Riley Financial | Sachem Capital vs. B Riley Financial | Sachem Capital vs. B Riley Financial, |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |