Correlation Between Seers Technology and Poongsan
Can any of the company-specific risk be diversified away by investing in both Seers Technology and Poongsan 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 Seers Technology and Poongsan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seers Technology and Poongsan, you can compare the effects of market volatilities on Seers Technology and Poongsan 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 Seers Technology with a short position of Poongsan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seers Technology and Poongsan.
Diversification Opportunities for Seers Technology and Poongsan
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Seers and Poongsan is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Seers Technology and Poongsan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poongsan and Seers Technology 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 Seers Technology are associated (or correlated) with Poongsan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poongsan has no effect on the direction of Seers Technology i.e., Seers Technology and Poongsan go up and down completely randomly.
Pair Corralation between Seers Technology and Poongsan
Assuming the 90 days trading horizon Seers Technology is expected to generate 1.35 times more return on investment than Poongsan. However, Seers Technology is 1.35 times more volatile than Poongsan. It trades about 0.18 of its potential returns per unit of risk. Poongsan is currently generating about -0.01 per unit of risk. If you would invest 952,000 in Seers Technology on October 25, 2024 and sell it today you would earn a total of 294,000 from holding Seers Technology or generate 30.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seers Technology vs. Poongsan
Performance |
| Timeline |
| Seers Technology |
| Poongsan |
Seers Technology and Poongsan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seers Technology and Poongsan
The main advantage of trading using opposite Seers Technology and Poongsan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seers Technology position performs unexpectedly, Poongsan 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 Poongsan will offset losses from the drop in Poongsan's long position.| Seers Technology vs. PJ Metal Co | Seers Technology vs. Netmarble Games Corp | Seers Technology vs. Hyundai Green Food | Seers Technology vs. Kukil Metal Co |
| Poongsan vs. Seers Technology | Poongsan vs. AeroSpace Technology of | Poongsan vs. Adaptive Plasma Technology | Poongsan vs. Orbitech 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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