Correlation Between Dana and SEAGATE
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By analyzing existing cross correlation between Dana Inc and SEAGATE HDD CAYMAN, you can compare the effects of market volatilities on Dana and SEAGATE 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 Dana with a short position of SEAGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana and SEAGATE.
Diversification Opportunities for Dana and SEAGATE
Very good diversification
The 3 months correlation between Dana and SEAGATE is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Dana Inc and SEAGATE HDD CAYMAN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEAGATE HDD CAYMAN and Dana 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 Dana Inc are associated (or correlated) with SEAGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEAGATE HDD CAYMAN has no effect on the direction of Dana i.e., Dana and SEAGATE go up and down completely randomly.
Pair Corralation between Dana and SEAGATE
Considering the 90-day investment horizon Dana Inc is expected to generate 2.77 times more return on investment than SEAGATE. However, Dana is 2.77 times more volatile than SEAGATE HDD CAYMAN. It trades about 0.01 of its potential returns per unit of risk. SEAGATE HDD CAYMAN is currently generating about 0.0 per unit of risk. If you would invest 1,408 in Dana Inc on September 14, 2024 and sell it today you would lose (156.00) from holding Dana Inc or give up 11.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Dana Inc vs. SEAGATE HDD CAYMAN
Performance |
| Timeline |
| Dana Inc |
| SEAGATE HDD CAYMAN |
Dana and SEAGATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana and SEAGATE
The main advantage of trading using opposite Dana and SEAGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana position performs unexpectedly, SEAGATE 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 SEAGATE will offset losses from the drop in SEAGATE's long position.The idea behind Dana Inc and SEAGATE HDD CAYMAN pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SEAGATE vs. SEI Investments | SEAGATE vs. PennantPark Floating Rate | SEAGATE vs. Chester Mining | SEAGATE vs. Xiabuxiabu Catering Management |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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