Correlation Between Sgi Peak and Summit Global
Can any of the company-specific risk be diversified away by investing in both Sgi Peak 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 Peak 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 Peak Growth and Summit Global Investments, you can compare the effects of market volatilities on Sgi Peak 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 Peak with a short position of Summit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sgi Peak and Summit Global.
Diversification Opportunities for Sgi Peak and Summit Global
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sgi and Summit is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Sgi Peak 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 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 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 Peak i.e., Sgi Peak and Summit Global go up and down completely randomly.
Pair Corralation between Sgi Peak and Summit Global
Assuming the 90 days horizon Sgi Peak is expected to generate 1.28 times less return on investment than Summit Global. But when comparing it to its historical volatility, Sgi Peak Growth is 1.09 times less risky than Summit Global. It trades about 0.35 of its potential returns per unit of risk. Summit Global Investments is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 2,117 in Summit Global Investments on September 1, 2024 and sell it today you would earn a total of 150.00 from holding Summit Global Investments or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sgi Peak Growth vs. Summit Global Investments
Performance |
| Timeline |
| Sgi Peak Growth |
| Summit Global Investments |
Sgi Peak and Summit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sgi Peak and Summit Global
The main advantage of trading using opposite Sgi Peak and Summit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sgi Peak 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 Peak vs. Summit Global Investments | Sgi Peak vs. Summit Global Investments | Sgi Peak vs. Sgi Prudent Growth | Sgi Peak vs. Summit Global Investments |
| Summit Global vs. Summit Global Investments | Summit Global vs. Summit Global Investments | Summit Global vs. Siit Dynamic Asset | Summit Global vs. Boston Partners All Cap |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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