Correlation Between SPCG Public and Country Group
Can any of the company-specific risk be diversified away by investing in both SPCG Public and Country Group 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 SPCG Public and Country Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPCG Public and Country Group Holdings, you can compare the effects of market volatilities on SPCG Public and Country Group 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 SPCG Public with a short position of Country Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPCG Public and Country Group.
Diversification Opportunities for SPCG Public and Country Group
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SPCG and Country is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding SPCG Public and Country Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Country Group Holdings and SPCG Public 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 SPCG Public are associated (or correlated) with Country Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Country Group Holdings has no effect on the direction of SPCG Public i.e., SPCG Public and Country Group go up and down completely randomly.
Pair Corralation between SPCG Public and Country Group
Assuming the 90 days trading horizon SPCG Public is expected to under-perform the Country Group. But the stock apears to be less risky and, when comparing its historical volatility, SPCG Public is 35.12 times less risky than Country Group. The stock trades about -0.05 of its potential returns per unit of risk. The Country Group Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 66.00 in Country Group Holdings on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Country Group Holdings or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPCG Public vs. Country Group Holdings
Performance |
| Timeline |
| SPCG Public |
| Country Group Holdings |
SPCG Public and Country Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPCG Public and Country Group
The main advantage of trading using opposite SPCG Public and Country Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPCG Public position performs unexpectedly, Country Group 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 Country Group will offset losses from the drop in Country Group's long position.| SPCG Public vs. BCPG Public | SPCG Public vs. TPI Polene Power | SPCG Public vs. BTS Group Holdings | SPCG Public vs. Energy Absolute Public |
| Country Group vs. Asia Plus Group | Country Group vs. Globlex Holding Management | Country Group vs. Asia Green Energy | Country Group vs. Amanah Leasing Public |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |