Correlation Between Sgi Peak and Sgi Prudent
Can any of the company-specific risk be diversified away by investing in both Sgi Peak and Sgi Prudent 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 Peak and Sgi Prudent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sgi Peak Growth and Sgi Prudent Growth, you can compare the effects of market volatilities on Sgi Peak and Sgi Prudent 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 Peak with a short position of Sgi Prudent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sgi Peak and Sgi Prudent.
Diversification Opportunities for Sgi Peak and Sgi Prudent
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sgi and Sgi is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Sgi Peak Growth and Sgi Prudent Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sgi Prudent Growth and Sgi Peak 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 Peak Growth are associated (or correlated) with Sgi Prudent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sgi Prudent Growth has no effect on the direction of Sgi Peak i.e., Sgi Peak and Sgi Prudent go up and down completely randomly.
Pair Corralation between Sgi Peak and Sgi Prudent
Assuming the 90 days horizon Sgi Peak Growth is expected to generate 1.14 times more return on investment than Sgi Prudent. However, Sgi Peak is 1.14 times more volatile than Sgi Prudent Growth. It trades about 0.07 of its potential returns per unit of risk. Sgi Prudent Growth is currently generating about -0.05 per unit of risk. If you would invest 1,158 in Sgi Peak Growth on October 21, 2024 and sell it today you would earn a total of 13.00 from holding Sgi Peak Growth or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sgi Peak Growth vs. Sgi Prudent Growth
Performance |
| Timeline |
| Sgi Peak Growth |
| Sgi Prudent Growth |
Sgi Peak and Sgi Prudent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sgi Peak and Sgi Prudent
The main advantage of trading using opposite Sgi Peak and Sgi Prudent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sgi Peak position performs unexpectedly, Sgi Prudent 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 Sgi Prudent will offset losses from the drop in Sgi Prudent's long position.| Sgi Peak vs. Tfa Alphagen Growth | Sgi Peak vs. Calamos Growth Fund | Sgi Peak vs. Morningstar Aggressive Growth | Sgi Peak vs. Upright Growth Income |
| Sgi Prudent vs. Summit Global Investments | Sgi Prudent vs. Summit Global Investments | Sgi Prudent vs. Sgi Peak Growth | Sgi Prudent 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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