Correlation Between Dalrada Financial and Sgd Holdings

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

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

Diversification Opportunities for Dalrada Financial and Sgd Holdings

-0.52

Correlation Coefficient

Dalrada Financial  Sgd Holdings

Excellent diversification

The 3 months correlation between Dalrada and Sgd is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Dalrada Financial Corp and Sgd Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sgd Holdings and Dalrada Financial 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 Dalrada Financial Corp 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 Dalrada Financial i.e., Dalrada Financial and Sgd Holdings go up and down completely randomly.

Pair Corralation between Dalrada Financial and Sgd Holdings

Given the investment horizon of 90 days Dalrada Financial Corp is expected to generate 14.0 times more return on investment than Sgd Holdings. However, Dalrada Financial is 14.0 times more volatile than Sgd Holdings. It trades about 0.13 of its potential returns per unit of risk. Sgd Holdings is currently generating about 0.03 per unit of risk. If you would invest  5.90  in Dalrada Financial Corp on December 27, 2024 and sell it today you would lose (4.80) from holding Dalrada Financial Corp or give up 81.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.77%
Values	Daily Returns

Dalrada Financial Corp  vs.  Sgd Holdings

Dalrada Financial Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dalrada Financial Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady fundamental indicators, Dalrada Financial displayed solid returns over the last few months and may actually be approaching a breakup point.

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 uncertain fundamental indicators, Sgd Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dalrada Financial and Sgd Holdings

The main advantage of trading using opposite Dalrada Financial and Sgd Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalrada Financial 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 Dalrada Financial Corp 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.