Correlation Between Sgd Holdings and AimRite Holdings

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

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

Diversification Opportunities for Sgd Holdings and AimRite Holdings

0.0

Correlation Coefficient

Sgd Holdings  AimRite Holdings

Pay attention - limited upside

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

Pair Corralation between Sgd Holdings and AimRite Holdings

If you would invest  0.49  in Sgd Holdings on December 27, 2024 and sell it today you would lose (0.03) from holding Sgd Holdings or give up 6.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Sgd Holdings  vs.  AimRite Holdings Corp

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.

AimRite Holdings Corp

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Sgd Holdings and AimRite Holdings

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

The idea behind Sgd Holdings and AimRite Holdings Corp 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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.