Correlation Between SeAH Bestee and MohenzCoLtd
Can any of the company-specific risk be diversified away by investing in both SeAH Bestee and MohenzCoLtd 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 SeAH Bestee and MohenzCoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeAH Bestee and MohenzCoLtd, you can compare the effects of market volatilities on SeAH Bestee and MohenzCoLtd 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 SeAH Bestee with a short position of MohenzCoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeAH Bestee and MohenzCoLtd.
Diversification Opportunities for SeAH Bestee and MohenzCoLtd
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SeAH and MohenzCoLtd is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding SeAH Bestee and MohenzCoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MohenzCoLtd and SeAH Bestee 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 SeAH Bestee are associated (or correlated) with MohenzCoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MohenzCoLtd has no effect on the direction of SeAH Bestee i.e., SeAH Bestee and MohenzCoLtd go up and down completely randomly.
Pair Corralation between SeAH Bestee and MohenzCoLtd
Assuming the 90 days trading horizon SeAH Bestee is expected to generate 1.06 times more return on investment than MohenzCoLtd. However, SeAH Bestee is 1.06 times more volatile than MohenzCoLtd. It trades about 0.0 of its potential returns per unit of risk. MohenzCoLtd is currently generating about -0.07 per unit of risk. If you would invest 2,475,000 in SeAH Bestee on August 28, 2024 and sell it today you would lose (365,000) from holding SeAH Bestee or give up 14.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SeAH Bestee vs. MohenzCoLtd
Performance |
| Timeline |
| SeAH Bestee |
| MohenzCoLtd |
SeAH Bestee and MohenzCoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeAH Bestee and MohenzCoLtd
The main advantage of trading using opposite SeAH Bestee and MohenzCoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeAH Bestee position performs unexpectedly, MohenzCoLtd 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 MohenzCoLtd will offset losses from the drop in MohenzCoLtd's long position.| SeAH Bestee vs. Sewoon Medical Co | SeAH Bestee vs. Sung Bo Chemicals | SeAH Bestee vs. Namhae Chemical | SeAH Bestee vs. Daehan Synthetic Fiber |
| MohenzCoLtd vs. LG Chemicals | MohenzCoLtd vs. Lotte Chemical Corp | MohenzCoLtd vs. Hyundai Steel | MohenzCoLtd vs. Seah Steel Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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