Correlation Between Stic Investments and Sam A

Can any of the company-specific risk be diversified away by investing in both Stic Investments and Sam A 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 Stic Investments and Sam A into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Stic Investments and Sam A Pharm Co, you can compare the effects of market volatilities on Stic Investments and Sam A 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 Stic Investments with a short position of Sam A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and Sam A.

Diversification Opportunities for Stic Investments and Sam A

0.42

Correlation Coefficient

Stic Investments  Sam A

Very weak diversification

The 3 months correlation between Stic and Sam is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and Sam A Pharm Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam A Pharm and Stic Investments 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 Stic Investments are associated (or correlated) with Sam A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam A Pharm has no effect on the direction of Stic Investments i.e., Stic Investments and Sam A go up and down completely randomly.

Pair Corralation between Stic Investments and Sam A

Assuming the 90 days trading horizon Stic Investments is expected to under-perform the Sam A. In addition to that, Stic Investments is 1.56 times more volatile than Sam A Pharm Co. It trades about -0.12 of its total potential returns per unit of risk. Sam A Pharm Co is currently generating about -0.03 per unit of volatility. If you would invest  1,648,087  in Sam A Pharm Co on December 21, 2024 and sell it today you would lose (32,087) from holding Sam A Pharm Co or give up 1.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Stic Investments  vs.  Sam A Pharm Co

Stic Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stic Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Sam A Pharm

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sam A Pharm Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Sam A is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Stic Investments and Sam A

The main advantage of trading using opposite Stic Investments and Sam A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, Sam A 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 Sam A will offset losses from the drop in Sam A's long position.

The idea behind Stic Investments and Sam A Pharm Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.