Correlation Between Seohee Construction and SeAH Bestee
Can any of the company-specific risk be diversified away by investing in both Seohee Construction 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 Seohee Construction and SeAH Bestee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seohee Construction Co and SeAH Bestee, you can compare the effects of market volatilities on Seohee Construction 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 Seohee Construction with a short position of SeAH Bestee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seohee Construction and SeAH Bestee.
Diversification Opportunities for Seohee Construction and SeAH Bestee
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Seohee and SeAH is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Seohee Construction Co and SeAH Bestee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeAH Bestee and Seohee Construction 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 Seohee Construction Co 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 Seohee Construction i.e., Seohee Construction and SeAH Bestee go up and down completely randomly.
Pair Corralation between Seohee Construction and SeAH Bestee
Assuming the 90 days trading horizon Seohee Construction is expected to generate 1.12 times less return on investment than SeAH Bestee. But when comparing it to its historical volatility, Seohee Construction Co is 1.25 times less risky than SeAH Bestee. It trades about 0.1 of its potential returns per unit of risk. SeAH Bestee is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,928,000 in SeAH Bestee on November 27, 2024 and sell it today you would earn a total of 57,000 from holding SeAH Bestee or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seohee Construction Co vs. SeAH Bestee
Performance |
| Timeline |
| Seohee Construction |
| SeAH Bestee |
Seohee Construction and SeAH Bestee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seohee Construction and SeAH Bestee
The main advantage of trading using opposite Seohee Construction and SeAH Bestee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seohee Construction 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.| Seohee Construction vs. KCC Engineering Construction | Seohee Construction vs. Samchuly Bicycle Co | Seohee Construction vs. SFA Engineering | Seohee Construction vs. SEOHAN Const EngcoLtd |
| SeAH Bestee vs. Hyundai Industrial Co | SeAH Bestee vs. CKH Food Health | SeAH Bestee vs. Kyeryong Construction Industrial | SeAH Bestee vs. Chorokbaem Healthcare 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |