Correlation Between SohuCom and SP Global
Can any of the company-specific risk be diversified away by investing in both SohuCom and SP Global 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 SohuCom and SP Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SohuCom and SP Global, you can compare the effects of market volatilities on SohuCom and SP Global 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 SohuCom with a short position of SP Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SohuCom and SP Global.
Diversification Opportunities for SohuCom and SP Global
Very good diversification
The 3 months correlation between SohuCom and SPGI is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding SohuCom and SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Global and SohuCom 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 SohuCom are associated (or correlated) with SP Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Global has no effect on the direction of SohuCom i.e., SohuCom and SP Global go up and down completely randomly.
Pair Corralation between SohuCom and SP Global
Given the investment horizon of 90 days SohuCom is expected to generate 1.63 times more return on investment than SP Global. However, SohuCom is 1.63 times more volatile than SP Global. It trades about 0.19 of its potential returns per unit of risk. SP Global is currently generating about -0.11 per unit of risk. If you would invest 1,109 in SohuCom on February 3, 2024 and sell it today you would earn a total of 68.00 from holding SohuCom or generate 6.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SohuCom vs. SP Global
Performance |
Timeline |
SohuCom |
SP Global |
SohuCom and SP Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SohuCom and SP Global
The main advantage of trading using opposite SohuCom and SP Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SohuCom position performs unexpectedly, SP Global 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 SP Global will offset losses from the drop in SP Global's long position.SohuCom vs. i3 Interactive | SohuCom vs. Bragg Gaming Group | SohuCom vs. GDEV Inc | SohuCom vs. Playtika Holding Corp |
SP Global vs. Dun Bradstreet Holdings | SP Global vs. Intercontinental Exchange | SP Global vs. Nasdaq Inc | SP Global vs. CME Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Transaction History View history of all your transactions and understand their impact on performance | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |