Correlation Between Seers Technology and KG Eco
Can any of the company-specific risk be diversified away by investing in both Seers Technology and KG Eco 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 KG Eco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seers Technology and KG Eco Technology, you can compare the effects of market volatilities on Seers Technology and KG Eco 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 KG Eco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seers Technology and KG Eco.
Diversification Opportunities for Seers Technology and KG Eco
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Seers and 151860 is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Seers Technology and KG Eco Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KG Eco Technology 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 KG Eco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KG Eco Technology has no effect on the direction of Seers Technology i.e., Seers Technology and KG Eco go up and down completely randomly.
Pair Corralation between Seers Technology and KG Eco
Assuming the 90 days trading horizon Seers Technology is expected to generate 1.45 times more return on investment than KG Eco. However, Seers Technology is 1.45 times more volatile than KG Eco Technology. It trades about -0.05 of its potential returns per unit of risk. KG Eco Technology is currently generating about -0.08 per unit of risk. If you would invest 1,850,000 in Seers Technology on October 13, 2024 and sell it today you would lose (626,000) from holding Seers Technology or give up 33.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.57% |
| Values | Daily Returns |
Seers Technology vs. KG Eco Technology
Performance |
| Timeline |
| Seers Technology |
| KG Eco Technology |
Seers Technology and KG Eco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seers Technology and KG Eco
The main advantage of trading using opposite Seers Technology and KG Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seers Technology position performs unexpectedly, KG Eco 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 KG Eco will offset losses from the drop in KG Eco'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 |
| KG Eco vs. Korea Investment Holdings | KG Eco vs. Seers Technology | KG Eco vs. KTB Investment Securities | KG Eco vs. Ilji Technology 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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