Correlation Between SVI Public and Country Group
Can any of the company-specific risk be diversified away by investing in both SVI 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 SVI 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 SVI Public and Country Group Holdings, you can compare the effects of market volatilities on SVI 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 SVI Public with a short position of Country Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVI Public and Country Group.
Diversification Opportunities for SVI Public and Country Group
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between SVI and Country is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding SVI 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 SVI 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 SVI 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 SVI Public i.e., SVI Public and Country Group go up and down completely randomly.
Pair Corralation between SVI Public and Country Group
Assuming the 90 days trading horizon SVI Public is expected to under-perform the Country Group. In addition to that, SVI Public is 3.51 times more volatile than Country Group Holdings. It trades about -0.13 of its total potential returns per unit of risk. Country Group Holdings is currently generating about -0.11 per unit of volatility. If you would invest 69.00 in Country Group Holdings on August 30, 2024 and sell it today you would lose (2.00) from holding Country Group Holdings or give up 2.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SVI Public vs. Country Group Holdings
Performance |
| Timeline |
| SVI Public |
| Country Group Holdings |
SVI Public and Country Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVI Public and Country Group
The main advantage of trading using opposite SVI Public and Country Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVI 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.| SVI Public vs. KCE Electronics Public | SVI Public vs. Hana Microelectronics Public | SVI Public vs. Precious Shipping Public | SVI Public vs. Siri Prime Office |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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