Correlation Between SeAH Bestee and Playgram
Can any of the company-specific risk be diversified away by investing in both SeAH Bestee and Playgram 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 Playgram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeAH Bestee and Playgram Co, you can compare the effects of market volatilities on SeAH Bestee and Playgram 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 Playgram. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeAH Bestee and Playgram.
Diversification Opportunities for SeAH Bestee and Playgram
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SeAH and Playgram is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding SeAH Bestee and Playgram Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playgram 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 Playgram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playgram has no effect on the direction of SeAH Bestee i.e., SeAH Bestee and Playgram go up and down completely randomly.
Pair Corralation between SeAH Bestee and Playgram
Assuming the 90 days trading horizon SeAH Bestee is expected to generate 0.89 times more return on investment than Playgram. However, SeAH Bestee is 1.13 times less risky than Playgram. It trades about 0.03 of its potential returns per unit of risk. Playgram Co is currently generating about 0.02 per unit of risk. If you would invest 1,926,000 in SeAH Bestee on November 2, 2024 and sell it today you would earn a total of 48,000 from holding SeAH Bestee or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SeAH Bestee vs. Playgram Co
Performance |
| Timeline |
| SeAH Bestee |
| Playgram |
SeAH Bestee and Playgram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeAH Bestee and Playgram
The main advantage of trading using opposite SeAH Bestee and Playgram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeAH Bestee position performs unexpectedly, Playgram 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 Playgram will offset losses from the drop in Playgram's long position.| SeAH Bestee vs. Fine Besteel Co | SeAH Bestee vs. LG Household Healthcare | SeAH Bestee vs. Samlip General Foods | SeAH Bestee vs. Daehan Steel |
| Playgram vs. Kukdo Chemical Co | Playgram vs. Automobile Pc | Playgram vs. Tae Kyung Chemical | Playgram vs. KPX Green Chemical |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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