Correlation Between SGF Capital and S P

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

By analyzing existing cross correlation between SGF Capital Public and S P V, you can compare the effects of market volatilities on SGF Capital and S P 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 SGF Capital with a short position of S P. Check out your portfolio center. Please also check ongoing floating volatility patterns of SGF Capital and S P.

Diversification Opportunities for SGF Capital and S P

0.62

Correlation Coefficient

SGF Capital  S P

Poor diversification

The 3 months correlation between SGF and SPVI is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding SGF Capital Public and S P V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S P V and SGF Capital 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 SGF Capital Public are associated (or correlated) with S P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S P V has no effect on the direction of SGF Capital i.e., SGF Capital and S P go up and down completely randomly.

Pair Corralation between SGF Capital and S P

Assuming the 90 days trading horizon SGF Capital Public is expected to generate 1.0 times more return on investment than S P. However, SGF Capital is 1.0 times more volatile than S P V. It trades about 0.04 of its potential returns per unit of risk. S P V is currently generating about 0.04 per unit of risk. If you would invest  49.00  in SGF Capital Public on October 22, 2024 and sell it today you would lose (29.00) from holding SGF Capital Public or give up 59.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

SGF Capital Public  vs.  S P V

SGF Capital Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SGF Capital Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

S P V

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days S P V has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with SGF Capital and S P

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

The idea behind SGF Capital Public and S P V 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.