Correlation Between 866677AH0 and Stagwell

Can any of the company-specific risk be diversified away by investing in both 866677AH0 and Stagwell 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 866677AH0 and Stagwell into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SUI 42 15 APR 32 and Stagwell, you can compare the effects of market volatilities on 866677AH0 and Stagwell 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 866677AH0 with a short position of Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of 866677AH0 and Stagwell.

Diversification Opportunities for 866677AH0 and Stagwell

0.07

Correlation Coefficient

866677AH0  Stagwell

Significant diversification

The 3 months correlation between 866677AH0 and Stagwell is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding SUI 42 15 APR 32 and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell and 866677AH0 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 SUI 42 15 APR 32 are associated (or correlated) with Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of 866677AH0 i.e., 866677AH0 and Stagwell go up and down completely randomly.

Pair Corralation between 866677AH0 and Stagwell

Assuming the 90 days trading horizon SUI 42 15 APR 32 is expected to generate 0.19 times more return on investment than Stagwell. However, SUI 42 15 APR 32 is 5.24 times less risky than Stagwell. It trades about -0.08 of its potential returns per unit of risk. Stagwell is currently generating about -0.02 per unit of risk. If you would invest  9,438  in SUI 42 15 APR 32 on September 25, 2024 and sell it today you would lose (207.00) from holding SUI 42 15 APR 32 or give up 2.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	93.75%
Values	Daily Returns

SUI 42 15 APR 32  vs.  Stagwell

SUI 42 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SUI 42 15 APR 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 866677AH0 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Stagwell

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stagwell has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Stagwell is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with 866677AH0 and Stagwell

The main advantage of trading using opposite 866677AH0 and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 866677AH0 position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell's long position.

The idea behind SUI 42 15 APR 32 and Stagwell 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.