Correlation Between Critical Solutions and Sgd Holdings

Can any of the company-specific risk be diversified away by investing in both Critical Solutions and Sgd Holdings 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 Critical Solutions and Sgd Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Critical Solutions and Sgd Holdings, you can compare the effects of market volatilities on Critical Solutions and Sgd Holdings 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 Critical Solutions with a short position of Sgd Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Critical Solutions and Sgd Holdings.

Diversification Opportunities for Critical Solutions and Sgd Holdings

0.0

Correlation Coefficient

Critical Solutions  Sgd Holdings

Pay attention - limited upside

The 3 months correlation between Critical and Sgd is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Critical Solutions and Sgd Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sgd Holdings and Critical Solutions 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 Critical Solutions are associated (or correlated) with Sgd Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sgd Holdings has no effect on the direction of Critical Solutions i.e., Critical Solutions and Sgd Holdings go up and down completely randomly.

Pair Corralation between Critical Solutions and Sgd Holdings

If you would invest  0.47  in Sgd Holdings on December 28, 2024 and sell it today you would lose (0.01) from holding Sgd Holdings or give up 2.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Critical Solutions  vs.  Sgd Holdings

Critical Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Critical Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong essential indicators, Critical Solutions is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Sgd Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sgd Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile fundamental indicators, Sgd Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Critical Solutions and Sgd Holdings

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

The idea behind Critical Solutions and Sgd Holdings 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.