Correlation Between Rafael Holdings, and SCCG

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Can any of the company-specific risk be diversified away by investing in both Rafael Holdings, and SCCG 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 Rafael Holdings, and SCCG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rafael Holdings, and SCCG, you can compare the effects of market volatilities on Rafael Holdings, and SCCG 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 Rafael Holdings, with a short position of SCCG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rafael Holdings, and SCCG.

Diversification Opportunities for Rafael Holdings, and SCCG

-0.48
  Correlation Coefficient

Very good diversification

The 3 months correlation between Rafael and SCCG is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Rafael Holdings, and SCCG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCCG and Rafael 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 Rafael Holdings, are associated (or correlated) with SCCG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCCG has no effect on the direction of Rafael Holdings, i.e., Rafael Holdings, and SCCG go up and down completely randomly.

Pair Corralation between Rafael Holdings, and SCCG

Considering the 90-day investment horizon Rafael Holdings, is expected to under-perform the SCCG. In addition to that, Rafael Holdings, is 6.49 times more volatile than SCCG. It trades about -0.07 of its total potential returns per unit of risk. SCCG is currently generating about 0.1 per unit of volatility. If you would invest  2,231  in SCCG on August 18, 2025 and sell it today you would earn a total of  90.00  from holding SCCG or generate 4.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Rafael Holdings,  vs.  SCCG

 Performance 
       Timeline  
Rafael Holdings, 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Rafael Holdings, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
SCCG 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in SCCG are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, SCCG is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Rafael Holdings, and SCCG Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Rafael Holdings, and SCCG

The main advantage of trading using opposite Rafael Holdings, and SCCG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rafael Holdings, position performs unexpectedly, SCCG 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 SCCG will offset losses from the drop in SCCG's long position.
The idea behind Rafael Holdings, and SCCG 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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