Correlation Between Sugi Holdings and ALIBHLINFTECUNSPADR

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

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

Diversification Opportunities for Sugi Holdings and ALIBHLINFTECUNSPADR

0.54

Correlation Coefficient

Sugi Holdings  ALIBHLINFTECUNSPADR

Very weak diversification

The 3 months correlation between Sugi and ALIBHLINFTECUNSPADR is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Sugi Holdings CoLtd and ALIBHLINFTECUNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALIBHLINFTECUNSPADR and Sugi 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 Sugi Holdings CoLtd are associated (or correlated) with ALIBHLINFTECUNSPADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALIBHLINFTECUNSPADR has no effect on the direction of Sugi Holdings i.e., Sugi Holdings and ALIBHLINFTECUNSPADR go up and down completely randomly.

Pair Corralation between Sugi Holdings and ALIBHLINFTECUNSPADR

Assuming the 90 days horizon Sugi Holdings CoLtd is expected to generate 0.39 times more return on investment than ALIBHLINFTECUNSPADR. However, Sugi Holdings CoLtd is 2.57 times less risky than ALIBHLINFTECUNSPADR. It trades about 0.04 of its potential returns per unit of risk. ALIBHLINFTECUNSPADR is currently generating about 0.01 per unit of risk. If you would invest  1,333  in Sugi Holdings CoLtd on September 12, 2024 and sell it today you would earn a total of  237.00  from holding Sugi Holdings CoLtd or generate 17.78% return on investment over 90 days.

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

Sugi Holdings CoLtd  vs.  ALIBHLINFTECUNSPADR

Sugi Holdings CoLtd

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sugi Holdings CoLtd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Sugi Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

ALIBHLINFTECUNSPADR

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ALIBHLINFTECUNSPADR are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ALIBHLINFTECUNSPADR reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sugi Holdings and ALIBHLINFTECUNSPADR

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

The idea behind Sugi Holdings CoLtd and ALIBHLINFTECUNSPADR 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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.