Correlation Between Sgd Holdings and Equifax
Can any of the company-specific risk be diversified away by investing in both Sgd Holdings and Equifax 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 Sgd Holdings and Equifax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sgd Holdings and Equifax, you can compare the effects of market volatilities on Sgd Holdings and Equifax 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 Sgd Holdings with a short position of Equifax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sgd Holdings and Equifax.
Diversification Opportunities for Sgd Holdings and Equifax
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sgd and Equifax is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sgd Holdings and Equifax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equifax and Sgd 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 Sgd Holdings are associated (or correlated) with Equifax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equifax has no effect on the direction of Sgd Holdings i.e., Sgd Holdings and Equifax go up and down completely randomly.
Pair Corralation between Sgd Holdings and Equifax
Given the investment horizon of 90 days Sgd Holdings is expected to generate 7.68 times more return on investment than Equifax. However, Sgd Holdings is 7.68 times more volatile than Equifax. It trades about 0.16 of its potential returns per unit of risk. Equifax is currently generating about -0.02 per unit of risk. If you would invest 0.40 in Sgd Holdings on September 3, 2024 and sell it today you would earn a total of 0.14 from holding Sgd Holdings or generate 35.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sgd Holdings vs. Equifax
Performance |
| Timeline |
| Sgd Holdings |
| Equifax |
Sgd Holdings and Equifax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sgd Holdings and Equifax
The main advantage of trading using opposite Sgd Holdings and Equifax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sgd Holdings position performs unexpectedly, Equifax 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 Equifax will offset losses from the drop in Equifax's long position.| Sgd Holdings vs. Equifax | Sgd Holdings vs. TransUnion | Sgd Holdings vs. Booz Allen Hamilton | Sgd Holdings vs. Bureau Veritas SA |
| Equifax vs. Verisk Analytics | Equifax vs. Exponent | Equifax vs. FTI Consulting | Equifax vs. Franklin Covey |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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