Correlation Between Six Circles and Six Circles

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Six Circles and Six Circles 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 Six Circles and Six Circles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Six Circles International and Six Circles Credit, you can compare the effects of market volatilities on Six Circles and Six Circles 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 Six Circles with a short position of Six Circles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Six Circles and Six Circles.

Diversification Opportunities for Six Circles and Six Circles

-0.31
  Correlation Coefficient

Very good diversification

The 3 months correlation between Six and Six is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Six Circles International and Six Circles Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Circles Credit and Six Circles 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 Six Circles International are associated (or correlated) with Six Circles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Circles Credit has no effect on the direction of Six Circles i.e., Six Circles and Six Circles go up and down completely randomly.

Pair Corralation between Six Circles and Six Circles

Assuming the 90 days horizon Six Circles International is expected to under-perform the Six Circles. In addition to that, Six Circles is 5.51 times more volatile than Six Circles Credit. It trades about -0.06 of its total potential returns per unit of risk. Six Circles Credit is currently generating about 0.12 per unit of volatility. If you would invest  890.00  in Six Circles Credit on September 12, 2024 and sell it today you would earn a total of  11.00  from holding Six Circles Credit or generate 1.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

Six Circles International  vs.  Six Circles Credit

 Performance 
       Timeline  
Six Circles International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Six Circles International has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Six Circles is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Six Circles Credit 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Six Circles Credit are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Six Circles is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Six Circles and Six Circles Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Six Circles and Six Circles

The main advantage of trading using opposite Six Circles and Six Circles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Six Circles position performs unexpectedly, Six Circles 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 Six Circles will offset losses from the drop in Six Circles' long position.
The idea behind Six Circles International and Six Circles Credit 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.
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

Other Complementary Tools

Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Bonds Directory
Find actively traded corporate debentures issued by US companies
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets