Correlation Between Alton Sports and SeAH Besteel
Can any of the company-specific risk be diversified away by investing in both Alton Sports and SeAH Besteel 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 Alton Sports and SeAH Besteel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alton Sports CoLtd and SeAH Besteel Corp, you can compare the effects of market volatilities on Alton Sports and SeAH Besteel 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 Alton Sports with a short position of SeAH Besteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alton Sports and SeAH Besteel.
Diversification Opportunities for Alton Sports and SeAH Besteel
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alton and SeAH is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Alton Sports CoLtd and SeAH Besteel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeAH Besteel Corp and Alton Sports 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 Alton Sports CoLtd are associated (or correlated) with SeAH Besteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SeAH Besteel Corp has no effect on the direction of Alton Sports i.e., Alton Sports and SeAH Besteel go up and down completely randomly.
Pair Corralation between Alton Sports and SeAH Besteel
Assuming the 90 days trading horizon Alton Sports CoLtd is expected to under-perform the SeAH Besteel. But the stock apears to be less risky and, when comparing its historical volatility, Alton Sports CoLtd is 1.3 times less risky than SeAH Besteel. The stock trades about -0.13 of its potential returns per unit of risk. The SeAH Besteel Corp is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,490,000 in SeAH Besteel Corp on November 5, 2024 and sell it today you would lose (562,000) from holding SeAH Besteel Corp or give up 22.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alton Sports CoLtd vs. SeAH Besteel Corp
Performance |
| Timeline |
| Alton Sports CoLtd |
| SeAH Besteel Corp |
Alton Sports and SeAH Besteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alton Sports and SeAH Besteel
The main advantage of trading using opposite Alton Sports and SeAH Besteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alton Sports position performs unexpectedly, SeAH Besteel 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 Besteel will offset losses from the drop in SeAH Besteel's long position.| Alton Sports vs. KTB Investment Securities | Alton Sports vs. Sam Yang Foods | Alton Sports vs. Daol Investment Securities | Alton Sports vs. Woori Technology Investment |
| SeAH Besteel vs. Golden Bridge Investment | SeAH Besteel vs. Daiyang Metal Co | SeAH Besteel vs. Daesung Industrial Co | SeAH Besteel vs. Songwon Industrial 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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