Correlation Between Sea and PLAY2CHILL
Can any of the company-specific risk be diversified away by investing in both Sea and PLAY2CHILL 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 Sea and PLAY2CHILL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sea Limited and PLAY2CHILL SA ZY, you can compare the effects of market volatilities on Sea and PLAY2CHILL 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 Sea with a short position of PLAY2CHILL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea and PLAY2CHILL.
Diversification Opportunities for Sea and PLAY2CHILL
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sea and PLAY2CHILL is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sea Limited and PLAY2CHILL SA ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAY2CHILL SA ZY and Sea 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 Sea Limited are associated (or correlated) with PLAY2CHILL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAY2CHILL SA ZY has no effect on the direction of Sea i.e., Sea and PLAY2CHILL go up and down completely randomly.
Pair Corralation between Sea and PLAY2CHILL
Assuming the 90 days horizon Sea Limited is expected to generate 1.28 times more return on investment than PLAY2CHILL. However, Sea is 1.28 times more volatile than PLAY2CHILL SA ZY. It trades about 0.04 of its potential returns per unit of risk. PLAY2CHILL SA ZY is currently generating about -0.03 per unit of risk. If you would invest 6,910 in Sea Limited on January 17, 2025 and sell it today you would earn a total of 3,490 from holding Sea Limited or generate 50.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sea Limited vs. PLAY2CHILL SA ZY
Performance |
| Timeline |
| Sea Limited |
| PLAY2CHILL SA ZY |
Sea and PLAY2CHILL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea and PLAY2CHILL
The main advantage of trading using opposite Sea and PLAY2CHILL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea position performs unexpectedly, PLAY2CHILL 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 PLAY2CHILL will offset losses from the drop in PLAY2CHILL's long position.| Sea vs. Digilife Technologies Limited | Sea vs. NetSol Technologies | Sea vs. ANGLO ASIAN MINING | Sea vs. GLG LIFE TECH |
| PLAY2CHILL vs. ALERION CLEANPOWER | PLAY2CHILL vs. JD SPORTS FASH | PLAY2CHILL vs. Universal Display | PLAY2CHILL vs. ULTRA CLEAN HLDGS |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |