Correlation Between SeAH Besteel and BIT Computer
Can any of the company-specific risk be diversified away by investing in both SeAH Besteel and BIT Computer 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 Besteel and BIT Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeAH Besteel Corp and BIT Computer Co, you can compare the effects of market volatilities on SeAH Besteel and BIT Computer 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 Besteel with a short position of BIT Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeAH Besteel and BIT Computer.
Diversification Opportunities for SeAH Besteel and BIT Computer
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SeAH and BIT is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding SeAH Besteel Corp and BIT Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Computer and SeAH Besteel 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 Besteel Corp are associated (or correlated) with BIT Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Computer has no effect on the direction of SeAH Besteel i.e., SeAH Besteel and BIT Computer go up and down completely randomly.
Pair Corralation between SeAH Besteel and BIT Computer
Assuming the 90 days trading horizon SeAH Besteel Corp is expected to under-perform the BIT Computer. But the stock apears to be less risky and, when comparing its historical volatility, SeAH Besteel Corp is 1.04 times less risky than BIT Computer. The stock trades about -0.2 of its potential returns per unit of risk. The BIT Computer Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 491,675 in BIT Computer Co on October 12, 2024 and sell it today you would earn a total of 21,325 from holding BIT Computer Co or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SeAH Besteel Corp vs. BIT Computer Co
Performance |
| Timeline |
| SeAH Besteel Corp |
| BIT Computer |
SeAH Besteel and BIT Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeAH Besteel and BIT Computer
The main advantage of trading using opposite SeAH Besteel and BIT Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeAH Besteel position performs unexpectedly, BIT Computer 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 BIT Computer will offset losses from the drop in BIT Computer's long position.| SeAH Besteel vs. Hanjin Transportation Co | SeAH Besteel vs. Dongbang Transport Logistics | SeAH Besteel vs. Aprogen Healthcare Games | SeAH Besteel vs. Daishin Information Communications |
| BIT Computer vs. SeAH Besteel Corp | BIT Computer vs. Koryo Credit Information | BIT Computer vs. Han Kook Steel | BIT Computer vs. Samhyun Steel Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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