Correlation Between DATAGROUP and SERI INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both DATAGROUP and SERI INDUSTRIAL 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 DATAGROUP and SERI INDUSTRIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DATAGROUP SE and SERI INDUSTRIAL EO, you can compare the effects of market volatilities on DATAGROUP and SERI INDUSTRIAL 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 DATAGROUP with a short position of SERI INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATAGROUP and SERI INDUSTRIAL.
Diversification Opportunities for DATAGROUP and SERI INDUSTRIAL
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DATAGROUP and SERI is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding DATAGROUP SE and SERI INDUSTRIAL EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SERI INDUSTRIAL EO and DATAGROUP 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 DATAGROUP SE are associated (or correlated) with SERI INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SERI INDUSTRIAL EO has no effect on the direction of DATAGROUP i.e., DATAGROUP and SERI INDUSTRIAL go up and down completely randomly.
Pair Corralation between DATAGROUP and SERI INDUSTRIAL
Assuming the 90 days trading horizon DATAGROUP SE is expected to generate 0.6 times more return on investment than SERI INDUSTRIAL. However, DATAGROUP SE is 1.66 times less risky than SERI INDUSTRIAL. It trades about 0.13 of its potential returns per unit of risk. SERI INDUSTRIAL EO is currently generating about 0.05 per unit of risk. If you would invest 4,205 in DATAGROUP SE on September 1, 2024 and sell it today you would earn a total of 365.00 from holding DATAGROUP SE or generate 8.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DATAGROUP SE vs. SERI INDUSTRIAL EO
Performance |
| Timeline |
| DATAGROUP SE |
| SERI INDUSTRIAL EO |
DATAGROUP and SERI INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DATAGROUP and SERI INDUSTRIAL
The main advantage of trading using opposite DATAGROUP and SERI INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATAGROUP position performs unexpectedly, SERI INDUSTRIAL 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 SERI INDUSTRIAL will offset losses from the drop in SERI INDUSTRIAL's long position.| DATAGROUP vs. SLR Investment Corp | DATAGROUP vs. TOREX SEMICONDUCTOR LTD | DATAGROUP vs. HK Electric Investments | DATAGROUP vs. CDL INVESTMENT |
| SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |