Correlation Between Seah Steel and SeAH Bestee
Can any of the company-specific risk be diversified away by investing in both Seah Steel and SeAH Bestee 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 Steel and SeAH Bestee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seah Steel Corp and SeAH Bestee, you can compare the effects of market volatilities on Seah Steel and SeAH Bestee 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 Steel with a short position of SeAH Bestee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seah Steel and SeAH Bestee.
Diversification Opportunities for Seah Steel and SeAH Bestee
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Seah and SeAH is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Seah Steel Corp and SeAH Bestee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeAH Bestee and Seah Steel 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 Steel Corp are associated (or correlated) with SeAH Bestee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SeAH Bestee has no effect on the direction of Seah Steel i.e., Seah Steel and SeAH Bestee go up and down completely randomly.
Pair Corralation between Seah Steel and SeAH Bestee
Assuming the 90 days trading horizon Seah Steel is expected to generate 12.04 times less return on investment than SeAH Bestee. But when comparing it to its historical volatility, Seah Steel Corp is 1.87 times less risky than SeAH Bestee. It trades about 0.02 of its potential returns per unit of risk. SeAH Bestee is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,984,000 in SeAH Bestee on September 1, 2024 and sell it today you would earn a total of 316,000 from holding SeAH Bestee or generate 15.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seah Steel Corp vs. SeAH Bestee
Performance |
| Timeline |
| Seah Steel Corp |
| SeAH Bestee |
Seah Steel and SeAH Bestee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seah Steel and SeAH Bestee
The main advantage of trading using opposite Seah Steel and SeAH Bestee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seah Steel position performs unexpectedly, SeAH Bestee 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 SeAH Bestee will offset losses from the drop in SeAH Bestee's long position.| Seah Steel vs. DB Financial Investment | Seah Steel vs. KB Financial Group | Seah Steel vs. Digital Power Communications | Seah Steel vs. Sejong Telecom |
| SeAH Bestee vs. Air Busan Co | SeAH Bestee vs. BooKook Steel Co | SeAH Bestee vs. Daechang Steel Co | SeAH Bestee vs. Dongil 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |