Correlation Between Stock Exchange and SGF Capital
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and SGF 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 Stock Exchange and SGF Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and SGF Capital Public, you can compare the effects of market volatilities on Stock Exchange and SGF 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 Stock Exchange with a short position of SGF Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and SGF Capital.
Diversification Opportunities for Stock Exchange and SGF Capital
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stock and SGF is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and SGF Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGF Capital Public and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with SGF Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGF Capital Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and SGF Capital go up and down completely randomly.
Pair Corralation between Stock Exchange and SGF Capital
Assuming the 90 days trading horizon Stock Exchange is expected to generate 161.91 times less return on investment than SGF Capital. But when comparing it to its historical volatility, Stock Exchange Of is 171.31 times less risky than SGF Capital. It trades about 0.12 of its potential returns per unit of risk. SGF Capital Public is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 28.00 in SGF Capital Public on September 2, 2024 and sell it today you would lose (3.00) from holding SGF Capital Public or give up 10.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. SGF Capital Public
Performance |
| Timeline |
Stock Exchange and SGF Capital Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
SGF Capital Public
Pair trading matchups for SGF Capital
Pair Trading with Stock Exchange and SGF Capital
The main advantage of trading using opposite Stock Exchange and SGF Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, SGF 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 SGF Capital will offset losses from the drop in SGF Capital's long position.| Stock Exchange vs. Central Retail | Stock Exchange vs. Interlink Communication Public | Stock Exchange vs. NSL Foods Public | Stock Exchange vs. Central Plaza Hotel |
| SGF Capital vs. East Coast Furnitech | SGF Capital vs. Filter Vision Public | SGF Capital vs. Cho Thavee Public | SGF Capital vs. Akkhie Prakarn Public |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| CEOs Directory Screen CEOs from public companies around the world |