Correlation Between Sgi Prudent and Summit Global
Can any of the company-specific risk be diversified away by investing in both Sgi Prudent and Summit Global 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 Sgi Prudent and Summit Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sgi Prudent Growth and Summit Global Investments, you can compare the effects of market volatilities on Sgi Prudent and Summit Global 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 Sgi Prudent with a short position of Summit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sgi Prudent and Summit Global.
Diversification Opportunities for Sgi Prudent and Summit Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sgi and Summit is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sgi Prudent Growth and Summit Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Global Investments and Sgi Prudent 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 Sgi Prudent Growth are associated (or correlated) with Summit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Global Investments has no effect on the direction of Sgi Prudent i.e., Sgi Prudent and Summit Global go up and down completely randomly.
Pair Corralation between Sgi Prudent and Summit Global
Assuming the 90 days horizon Sgi Prudent Growth is expected to generate 1.04 times more return on investment than Summit Global. However, Sgi Prudent is 1.04 times more volatile than Summit Global Investments. It trades about 0.4 of its potential returns per unit of risk. Summit Global Investments is currently generating about 0.36 per unit of risk. If you would invest 1,170 in Sgi Prudent Growth on September 1, 2024 and sell it today you would earn a total of 53.00 from holding Sgi Prudent Growth or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sgi Prudent Growth vs. Summit Global Investments
Performance |
| Timeline |
| Sgi Prudent Growth |
| Summit Global Investments |
Sgi Prudent and Summit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sgi Prudent and Summit Global
The main advantage of trading using opposite Sgi Prudent and Summit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sgi Prudent position performs unexpectedly, Summit Global 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 Summit Global will offset losses from the drop in Summit Global's long position.| Sgi Prudent vs. Summit Global Investments | Sgi Prudent vs. Summit Global Investments | Sgi Prudent vs. Sgi Peak Growth | Sgi Prudent vs. Summit Global Investments |
| Summit Global vs. Summit Global Investments | Summit Global vs. Summit Global Investments | Summit Global vs. Bogle Small Cap | Summit Global vs. Summit Global Investments |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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