Correlation Between Sgi Prudent and Ycg Enhanced
Can any of the company-specific risk be diversified away by investing in both Sgi Prudent and Ycg Enhanced 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 Ycg Enhanced 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 Ycg Enhanced Fund, you can compare the effects of market volatilities on Sgi Prudent and Ycg Enhanced 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 Ycg Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sgi Prudent and Ycg Enhanced.
Diversification Opportunities for Sgi Prudent and Ycg Enhanced
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sgi and Ycg is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sgi Prudent Growth and Ycg Enhanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ycg Enhanced 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 Ycg Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ycg Enhanced has no effect on the direction of Sgi Prudent i.e., Sgi Prudent and Ycg Enhanced go up and down completely randomly.
Pair Corralation between Sgi Prudent and Ycg Enhanced
Assuming the 90 days horizon Sgi Prudent is expected to generate 1.24 times less return on investment than Ycg Enhanced. But when comparing it to its historical volatility, Sgi Prudent Growth is 1.39 times less risky than Ycg Enhanced. It trades about 0.1 of its potential returns per unit of risk. Ycg Enhanced Fund is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,656 in Ycg Enhanced Fund on September 2, 2024 and sell it today you would earn a total of 691.00 from holding Ycg Enhanced Fund or generate 26.02% 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. Ycg Enhanced Fund
Performance |
| Timeline |
| Sgi Prudent Growth |
| Ycg Enhanced |
Sgi Prudent and Ycg Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sgi Prudent and Ycg Enhanced
The main advantage of trading using opposite Sgi Prudent and Ycg Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sgi Prudent position performs unexpectedly, Ycg Enhanced 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 Ycg Enhanced will offset losses from the drop in Ycg Enhanced'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 |
| Ycg Enhanced vs. Conestoga Smid Cap | Ycg Enhanced vs. Fam Equity Income Fund | Ycg Enhanced vs. Matthew 25 Fund | Ycg Enhanced vs. Df Dent Premier |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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