Correlation Between SeAH Bestee and OCI
Can any of the company-specific risk be diversified away by investing in both SeAH Bestee and OCI 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 OCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeAH Bestee and OCI Co, you can compare the effects of market volatilities on SeAH Bestee and OCI 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 OCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeAH Bestee and OCI.
Diversification Opportunities for SeAH Bestee and OCI
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SeAH and OCI is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding SeAH Bestee and OCI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCI Co 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 OCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCI Co has no effect on the direction of SeAH Bestee i.e., SeAH Bestee and OCI go up and down completely randomly.
Pair Corralation between SeAH Bestee and OCI
Assuming the 90 days trading horizon SeAH Bestee is expected to generate 2.36 times more return on investment than OCI. However, SeAH Bestee is 2.36 times more volatile than OCI Co. It trades about 0.16 of its potential returns per unit of risk. OCI Co is currently generating about -0.27 per unit of risk. If you would invest 1,946,000 in SeAH Bestee on September 2, 2024 and sell it today you would earn a total of 354,000 from holding SeAH Bestee or generate 18.19% 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. OCI Co
Performance |
| Timeline |
| SeAH Bestee |
| OCI Co |
SeAH Bestee and OCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeAH Bestee and OCI
The main advantage of trading using opposite SeAH Bestee and OCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeAH Bestee position performs unexpectedly, OCI 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 OCI will offset losses from the drop in OCI's long position.| SeAH Bestee vs. TJ media Co | SeAH Bestee vs. QUALITAS SEMICONDUCTOR LTD | SeAH Bestee vs. Heungkuk Metaltech CoLtd | SeAH Bestee vs. YG Entertainment |
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.
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