Correlation Between SeAH Bestee and POSCO M
Can any of the company-specific risk be diversified away by investing in both SeAH Bestee and POSCO M 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 POSCO M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeAH Bestee and POSCO M TECH Co, you can compare the effects of market volatilities on SeAH Bestee and POSCO M 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 POSCO M. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeAH Bestee and POSCO M.
Diversification Opportunities for SeAH Bestee and POSCO M
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SeAH and POSCO is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding SeAH Bestee and POSCO M TECH Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POSCO M TECH 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 POSCO M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POSCO M TECH has no effect on the direction of SeAH Bestee i.e., SeAH Bestee and POSCO M go up and down completely randomly.
Pair Corralation between SeAH Bestee and POSCO M
Assuming the 90 days trading horizon SeAH Bestee is expected to generate 0.93 times more return on investment than POSCO M. However, SeAH Bestee is 1.07 times less risky than POSCO M. It trades about 0.0 of its potential returns per unit of risk. POSCO M TECH Co is currently generating about -0.06 per unit of risk. If you would invest 2,290,000 in SeAH Bestee on August 29, 2024 and sell it today you would lose (150,000) from holding SeAH Bestee or give up 6.55% 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. POSCO M TECH Co
Performance |
| Timeline |
| SeAH Bestee |
| POSCO M TECH |
SeAH Bestee and POSCO M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeAH Bestee and POSCO M
The main advantage of trading using opposite SeAH Bestee and POSCO M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeAH Bestee position performs unexpectedly, POSCO M 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 POSCO M will offset losses from the drop in POSCO M's long position.| SeAH Bestee vs. Incar Financial Service | SeAH Bestee vs. Seohee Construction Co | SeAH Bestee vs. KB Financial Group | SeAH Bestee vs. Dongkuk Structures Construction |
| POSCO M vs. Sung Bo Chemicals | POSCO M vs. Nh Investment And | POSCO M vs. Kukdong Oil Chemicals | POSCO M vs. NH Investment Securities |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |