Correlation Between Sgi Peak and Bogle Small

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

By analyzing existing cross correlation between Sgi Peak Growth and Bogle Small Cap, you can compare the effects of market volatilities on Sgi Peak and Bogle Small 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 Sgi Peak with a short position of Bogle Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sgi Peak and Bogle Small.

Diversification Opportunities for Sgi Peak and Bogle Small

0.74

Correlation Coefficient

Sgi Peak  Bogle Small

Poor diversification

The 3 months correlation between Sgi and Bogle is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sgi Peak Growth and Bogle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bogle Small Cap and Sgi Peak 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 Sgi Peak Growth are associated (or correlated) with Bogle Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bogle Small Cap has no effect on the direction of Sgi Peak i.e., Sgi Peak and Bogle Small go up and down completely randomly.

Pair Corralation between Sgi Peak and Bogle Small

Assuming the 90 days horizon Sgi Peak is expected to generate 1.09 times less return on investment than Bogle Small. But when comparing it to its historical volatility, Sgi Peak Growth is 2.0 times less risky than Bogle Small. It trades about 0.17 of its potential returns per unit of risk. Bogle Small Cap is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  3,144  in Bogle Small Cap on July 27, 2025 and sell it today you would earn a total of  212.00  from holding Bogle Small Cap or generate 6.74% return on investment over 90 days.

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

Sgi Peak Growth  vs.  Bogle Small Cap

Sgi Peak Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sgi Peak Growth are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Sgi Peak may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Bogle Small Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Bogle Small Cap are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Bogle Small may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Sgi Peak and Bogle Small

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

The idea behind Sgi Peak Growth and Bogle Small Cap 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.