Correlation Between SCG Construction and Din Capital
Can any of the company-specific risk be diversified away by investing in both SCG Construction and Din 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 SCG Construction and Din Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCG Construction JSC and Din Capital Investment, you can compare the effects of market volatilities on SCG Construction and Din 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 SCG Construction with a short position of Din Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCG Construction and Din Capital.
Diversification Opportunities for SCG Construction and Din Capital
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SCG and Din is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding SCG Construction JSC and Din Capital Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Din Capital Investment and SCG Construction 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 SCG Construction JSC are associated (or correlated) with Din Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Din Capital Investment has no effect on the direction of SCG Construction i.e., SCG Construction and Din Capital go up and down completely randomly.
Pair Corralation between SCG Construction and Din Capital
Assuming the 90 days trading horizon SCG Construction is expected to generate 4.99 times less return on investment than Din Capital. But when comparing it to its historical volatility, SCG Construction JSC is 5.1 times less risky than Din Capital. It trades about 0.06 of its potential returns per unit of risk. Din Capital Investment is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 930,000 in Din Capital Investment on August 28, 2024 and sell it today you would earn a total of 50,000 from holding Din Capital Investment or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 87.1% |
| Values | Daily Returns |
SCG Construction JSC vs. Din Capital Investment
Performance |
| Timeline |
| SCG Construction JSC |
| Din Capital Investment |
SCG Construction and Din Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCG Construction and Din Capital
The main advantage of trading using opposite SCG Construction and Din Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCG Construction position performs unexpectedly, Din 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 Din Capital will offset losses from the drop in Din Capital's long position.| SCG Construction vs. FIT INVEST JSC | SCG Construction vs. Damsan JSC | SCG Construction vs. An Phat Plastic | SCG Construction vs. APG Securities Joint |
| Din Capital vs. Hai An Transport | Din Capital vs. Dinhvu Port Investment | Din Capital vs. MST Investment JSC | Din Capital vs. Pacific Petroleum Transportation |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |