Correlation Between ALIBHLINFTECUNSPADR and Sugi Holdings

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

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

Diversification Opportunities for ALIBHLINFTECUNSPADR and Sugi Holdings

-0.37

Correlation Coefficient

ALIBHLINFTECUNSPADR  Sugi Holdings

Very good diversification

The 3 months correlation between ALIBHLINFTECUNSPADR and Sugi is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding ALIBHLINFTECUNSPADR and Sugi Holdings CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sugi Holdings CoLtd and ALIBHLINFTECUNSPADR 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 ALIBHLINFTECUNSPADR are associated (or correlated) with Sugi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sugi Holdings CoLtd has no effect on the direction of ALIBHLINFTECUNSPADR i.e., ALIBHLINFTECUNSPADR and Sugi Holdings go up and down completely randomly.

Pair Corralation between ALIBHLINFTECUNSPADR and Sugi Holdings

Assuming the 90 days trading horizon ALIBHLINFTECUNSPADR is expected to under-perform the Sugi Holdings. In addition to that, ALIBHLINFTECUNSPADR is 1.84 times more volatile than Sugi Holdings CoLtd. It trades about 0.0 of its total potential returns per unit of risk. Sugi Holdings CoLtd is currently generating about 0.17 per unit of volatility. If you would invest  1,760  in Sugi Holdings CoLtd on April 25, 2025 and sell it today you would earn a total of  340.00  from holding Sugi Holdings CoLtd or generate 19.32% return on investment over 90 days.

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

ALIBHLINFTECUNSPADR  vs.  Sugi Holdings CoLtd

ALIBHLINFTECUNSPADR

Risk-Adjusted Performance

Very Weak

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

Sugi Holdings CoLtd

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sugi Holdings CoLtd are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Sugi Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ALIBHLINFTECUNSPADR and Sugi Holdings

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

The idea behind ALIBHLINFTECUNSPADR and Sugi Holdings CoLtd 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.