Correlation Between Seers Technology and Seojin Automotive
Can any of the company-specific risk be diversified away by investing in both Seers Technology and Seojin Automotive 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 Seojin Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seers Technology and Seojin Automotive CoLtd, you can compare the effects of market volatilities on Seers Technology and Seojin Automotive 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 Seojin Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seers Technology and Seojin Automotive.
Diversification Opportunities for Seers Technology and Seojin Automotive
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Seers and Seojin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Seers Technology and Seojin Automotive CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seojin Automotive CoLtd 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 Seojin Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seojin Automotive CoLtd has no effect on the direction of Seers Technology i.e., Seers Technology and Seojin Automotive go up and down completely randomly.
Pair Corralation between Seers Technology and Seojin Automotive
Assuming the 90 days trading horizon Seers Technology is expected to generate 3.08 times more return on investment than Seojin Automotive. However, Seers Technology is 3.08 times more volatile than Seojin Automotive CoLtd. It trades about 0.17 of its potential returns per unit of risk. Seojin Automotive CoLtd is currently generating about 0.19 per unit of risk. If you would invest 1,091,000 in Seers Technology on October 20, 2024 and sell it today you would earn a total of 138,000 from holding Seers Technology or generate 12.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seers Technology vs. Seojin Automotive CoLtd
Performance |
| Timeline |
| Seers Technology |
| Seojin Automotive CoLtd |
Seers Technology and Seojin Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seers Technology and Seojin Automotive
The main advantage of trading using opposite Seers Technology and Seojin Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seers Technology position performs unexpectedly, Seojin Automotive 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 Seojin Automotive will offset losses from the drop in Seojin Automotive's long position.| Seers Technology vs. Samsung Electronics Co | Seers Technology vs. Samsung Electronics Co | Seers Technology vs. LG Energy Solution | Seers Technology vs. SK Hynix |
| Seojin Automotive vs. Barunson Entertainment Arts | Seojin Automotive vs. Seers Technology | Seojin Automotive vs. Ilji Technology Co | Seojin Automotive vs. Cube Entertainment |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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