Correlation Between SEAZEN GROUP and CTP NV
Can any of the company-specific risk be diversified away by investing in both SEAZEN GROUP and CTP NV 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 SEAZEN GROUP and CTP NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEAZEN GROUP LTD and CTP NV EO, you can compare the effects of market volatilities on SEAZEN GROUP and CTP NV 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 SEAZEN GROUP with a short position of CTP NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEAZEN GROUP and CTP NV.
Diversification Opportunities for SEAZEN GROUP and CTP NV
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SEAZEN and CTP is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SEAZEN GROUP LTD and CTP NV EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTP NV EO and SEAZEN GROUP 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 SEAZEN GROUP LTD are associated (or correlated) with CTP NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTP NV EO has no effect on the direction of SEAZEN GROUP i.e., SEAZEN GROUP and CTP NV go up and down completely randomly.
Pair Corralation between SEAZEN GROUP and CTP NV
Assuming the 90 days trading horizon SEAZEN GROUP LTD is expected to generate 4.18 times more return on investment than CTP NV. However, SEAZEN GROUP is 4.18 times more volatile than CTP NV EO. It trades about 0.07 of its potential returns per unit of risk. CTP NV EO is currently generating about -0.03 per unit of risk. If you would invest 16.00 in SEAZEN GROUP LTD on September 26, 2024 and sell it today you would earn a total of 6.00 from holding SEAZEN GROUP LTD or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEAZEN GROUP LTD vs. CTP NV EO
Performance |
| Timeline |
| SEAZEN GROUP LTD |
| CTP NV EO |
SEAZEN GROUP and CTP NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEAZEN GROUP and CTP NV
The main advantage of trading using opposite SEAZEN GROUP and CTP NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEAZEN GROUP position performs unexpectedly, CTP NV 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 CTP NV will offset losses from the drop in CTP NV's long position.| SEAZEN GROUP vs. China Resources Land | SEAZEN GROUP vs. DEUTSCHE WOHNEN ADRS12 | SEAZEN GROUP vs. CTP NV EO | SEAZEN GROUP vs. Atrium Ljungberg AB |
| CTP NV vs. China Resources Land | CTP NV vs. DEUTSCHE WOHNEN ADRS12 | CTP NV vs. SEAZEN GROUP LTD | CTP NV vs. Atrium Ljungberg AB |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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