Correlation Between SGF Capital and Multibax Public
Can any of the company-specific risk be diversified away by investing in both SGF Capital and Multibax Public 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 SGF Capital and Multibax Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SGF Capital Public and Multibax Public, you can compare the effects of market volatilities on SGF Capital and Multibax Public 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 SGF Capital with a short position of Multibax Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of SGF Capital and Multibax Public.
Diversification Opportunities for SGF Capital and Multibax Public
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SGF and Multibax is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding SGF Capital Public and Multibax Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multibax Public and SGF Capital 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 SGF Capital Public are associated (or correlated) with Multibax Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multibax Public has no effect on the direction of SGF Capital i.e., SGF Capital and Multibax Public go up and down completely randomly.
Pair Corralation between SGF Capital and Multibax Public
Assuming the 90 days trading horizon SGF Capital Public is expected to generate 1.02 times more return on investment than Multibax Public. However, SGF Capital is 1.02 times more volatile than Multibax Public. It trades about -0.26 of its potential returns per unit of risk. Multibax Public is currently generating about -0.46 per unit of risk. If you would invest 30.00 in SGF Capital Public on September 5, 2024 and sell it today you would lose (6.00) from holding SGF Capital Public or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SGF Capital Public vs. Multibax Public
Performance |
| Timeline |
| SGF Capital Public |
| Multibax Public |
SGF Capital and Multibax Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SGF Capital and Multibax Public
The main advantage of trading using opposite SGF Capital and Multibax Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SGF Capital position performs unexpectedly, Multibax Public 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 Multibax Public will offset losses from the drop in Multibax Public's long position.| SGF Capital vs. Multibax Public | SGF Capital vs. Forth Smart Service | SGF Capital vs. LPN Development Public | SGF Capital vs. Jasmine International Public |
| Multibax Public vs. AJ Plast Public | Multibax Public vs. Thai Metal Drum | Multibax Public vs. Thantawan Industry Public | Multibax Public vs. Thai Film Industries |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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