Correlation Between Summit Global and Bogle Small
Can any of the company-specific risk be diversified away by investing in both Summit Global and Bogle Small 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 Summit Global and Bogle Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Global Investments and Bogle Small Cap, you can compare the effects of market volatilities on Summit Global and Bogle Small 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 Summit Global with a short position of Bogle Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Global and Bogle Small.
Diversification Opportunities for Summit Global and Bogle Small
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Summit and Bogle is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Summit Global Investments and Bogle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bogle Small Cap and Summit Global 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 Summit Global Investments are associated (or correlated) with Bogle Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bogle Small Cap has no effect on the direction of Summit Global i.e., Summit Global and Bogle Small go up and down completely randomly.
Pair Corralation between Summit Global and Bogle Small
Assuming the 90 days horizon Summit Global is expected to generate 1.01 times less return on investment than Bogle Small. But when comparing it to its historical volatility, Summit Global Investments is 1.9 times less risky than Bogle Small. It trades about 0.17 of its potential returns per unit of risk. Bogle Small Cap is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,037 in Bogle Small Cap on August 28, 2024 and sell it today you would earn a total of 447.00 from holding Bogle Small Cap or generate 14.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Global Investments vs. Bogle Small Cap
Performance |
| Timeline |
| Summit Global Investments |
| Bogle Small Cap |
Summit Global and Bogle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Global and Bogle Small
The main advantage of trading using opposite Summit Global and Bogle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Global position performs unexpectedly, Bogle Small 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 Bogle Small will offset losses from the drop in Bogle Small's long position.| Summit Global vs. Fidelity Sai Inflationfocused | Summit Global vs. Tiaa Cref Inflation Link | Summit Global vs. Blackrock Inflation Protected | Summit Global vs. Federated Hermes Inflation |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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