Correlation Between SSC Security and Global Digital

Can any of the company-specific risk be diversified away by investing in both SSC Security and Global Digital 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 SSC Security and Global Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SSC Security Services and Global Digital Soltn, you can compare the effects of market volatilities on SSC Security and Global Digital 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 SSC Security with a short position of Global Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSC Security and Global Digital.

Diversification Opportunities for SSC Security and Global Digital

0.0

Correlation Coefficient

SSC Security  Global Digital

Pay attention - limited upside

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

Pair Corralation between SSC Security and Global Digital

If you would invest  0.01  in Global Digital Soltn on December 25, 2024 and sell it today you would earn a total of  0.00  from holding Global Digital Soltn or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.72%
Values	Daily Returns

SSC Security Services  vs.  Global Digital Soltn

SSC Security Services

Risk-Adjusted Performance

Very Weak

Over the last 90 days SSC Security Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Global Digital Soltn

Risk-Adjusted Performance

Very Weak

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

Pair Trading with SSC Security and Global Digital

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

The idea behind SSC Security Services and Global Digital Soltn 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.