Correlation Between SGOCO and Avnet
Can any of the company-specific risk be diversified away by investing in both SGOCO and Avnet 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 SGOCO and Avnet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SGOCO Group and Avnet Inc, you can compare the effects of market volatilities on SGOCO and Avnet 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 SGOCO with a short position of Avnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of SGOCO and Avnet.
Diversification Opportunities for SGOCO and Avnet
Pay attention - limited upside
The @@bw1eo months correlation between SGOCO and Avnet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SGOCO Group and Avnet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avnet Inc and SGOCO 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 SGOCO Group are associated (or correlated) with Avnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avnet Inc has no effect on the direction of SGOCO i.e., SGOCO and Avnet go up and down completely randomly.
Pair Corralation between SGOCO and Avnet
If you would invest 4,044 in Avnet Inc on February 3, 2024 and sell it today you would earn a total of 897.00 from holding Avnet Inc or generate 22.18% return on investment over 90 days.
Time Period | @@bw1EO Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
SGOCO Group vs. Avnet Inc
Performance |
Timeline |
SGOCO Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Avnet Inc |
SGOCO and Avnet Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SGOCO and Avnet
The main advantage of trading using opposite SGOCO and Avnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SGOCO position performs unexpectedly, Avnet 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 Avnet will offset losses from the drop in Avnet's long position.SGOCO vs. BioNTech SE | SGOCO vs. Amkor Technology | SGOCO vs. Regeneron Pharmaceuticals | SGOCO vs. Usio Inc |
Check out your portfolio center.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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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