Correlation Between SeAH Bestee and SKC
Can any of the company-specific risk be diversified away by investing in both SeAH Bestee and SKC 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 SKC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeAH Bestee and SKC Co, you can compare the effects of market volatilities on SeAH Bestee and SKC 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 SKC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeAH Bestee and SKC.
Diversification Opportunities for SeAH Bestee and SKC
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SeAH and SKC is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding SeAH Bestee and SKC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKC 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 SKC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKC Co has no effect on the direction of SeAH Bestee i.e., SeAH Bestee and SKC go up and down completely randomly.
Pair Corralation between SeAH Bestee and SKC
Assuming the 90 days trading horizon SeAH Bestee is expected to generate 1.4 times more return on investment than SKC. However, SeAH Bestee is 1.4 times more volatile than SKC Co. It trades about 0.11 of its potential returns per unit of risk. SKC Co is currently generating about -0.35 per unit of risk. If you would invest 1,966,000 in SeAH Bestee on August 31, 2024 and sell it today you would earn a total of 224,000 from holding SeAH Bestee or generate 11.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SeAH Bestee vs. SKC Co
Performance |
| Timeline |
| SeAH Bestee |
| SKC Co |
SeAH Bestee and SKC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeAH Bestee and SKC
The main advantage of trading using opposite SeAH Bestee and SKC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeAH Bestee position performs unexpectedly, SKC 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 SKC will offset losses from the drop in SKC's long position.| SeAH Bestee vs. JYP Entertainment Corp | SeAH Bestee vs. YG Entertainment | SeAH Bestee vs. MediaZen | SeAH Bestee vs. SKONEC Entertainment Co |
| SKC vs. BIT Computer Co | SKC vs. Ssangyong Information Communication | SKC vs. DataSolution | SKC vs. CU Medical Systems |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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