Correlation Between SPAR and Samfine Creation
Can any of the company-specific risk be diversified away by investing in both SPAR and Samfine Creation 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 SPAR and Samfine Creation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPAR Group and Samfine Creation Holdings, you can compare the effects of market volatilities on SPAR and Samfine Creation 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 SPAR with a short position of Samfine Creation. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPAR and Samfine Creation.
Diversification Opportunities for SPAR and Samfine Creation
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPAR and Samfine is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding SPAR Group and Samfine Creation Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samfine Creation Holdings and SPAR 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 SPAR Group are associated (or correlated) with Samfine Creation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samfine Creation Holdings has no effect on the direction of SPAR i.e., SPAR and Samfine Creation go up and down completely randomly.
Pair Corralation between SPAR and Samfine Creation
Given the investment horizon of 90 days SPAR is expected to generate 1.07 times less return on investment than Samfine Creation. But when comparing it to its historical volatility, SPAR Group is 3.72 times less risky than Samfine Creation. It trades about 0.04 of its potential returns per unit of risk. Samfine Creation Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 530.00 in Samfine Creation Holdings on November 1, 2024 and sell it today you would lose (444.00) from holding Samfine Creation Holdings or give up 83.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 14.81% |
| Values | Daily Returns |
SPAR Group vs. Samfine Creation Holdings
Performance |
| Timeline |
| SPAR Group |
| Samfine Creation Holdings |
SPAR and Samfine Creation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPAR and Samfine Creation
The main advantage of trading using opposite SPAR and Samfine Creation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPAR position performs unexpectedly, Samfine Creation 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 Samfine Creation will offset losses from the drop in Samfine Creation's long position.| SPAR vs. Mitie Group Plc | SPAR vs. Dexterra Group | SPAR vs. Wildpack Beverage | SPAR vs. Intertek Group Plc |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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