Correlation Between RETAIL FOOD and SIEM OFFSHORE
Can any of the company-specific risk be diversified away by investing in both RETAIL FOOD and SIEM OFFSHORE 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 RETAIL FOOD and SIEM OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RETAIL FOOD GROUP and SIEM OFFSHORE NEW, you can compare the effects of market volatilities on RETAIL FOOD and SIEM OFFSHORE 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 RETAIL FOOD with a short position of SIEM OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of RETAIL FOOD and SIEM OFFSHORE.
Diversification Opportunities for RETAIL FOOD and SIEM OFFSHORE
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between RETAIL and SIEM is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP and SIEM OFFSHORE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEM OFFSHORE NEW and RETAIL FOOD 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 RETAIL FOOD GROUP are associated (or correlated) with SIEM OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEM OFFSHORE NEW has no effect on the direction of RETAIL FOOD i.e., RETAIL FOOD and SIEM OFFSHORE go up and down completely randomly.
Pair Corralation between RETAIL FOOD and SIEM OFFSHORE
Assuming the 90 days trading horizon RETAIL FOOD GROUP is expected to under-perform the SIEM OFFSHORE. But the stock apears to be less risky and, when comparing its historical volatility, RETAIL FOOD GROUP is 1.11 times less risky than SIEM OFFSHORE. The stock trades about -0.02 of its potential returns per unit of risk. The SIEM OFFSHORE NEW is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 165.00 in SIEM OFFSHORE NEW on January 17, 2025 and sell it today you would lose (20.00) from holding SIEM OFFSHORE NEW or give up 12.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RETAIL FOOD GROUP vs. SIEM OFFSHORE NEW
Performance |
| Timeline |
| RETAIL FOOD GROUP |
| SIEM OFFSHORE NEW |
RETAIL FOOD and SIEM OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RETAIL FOOD and SIEM OFFSHORE
The main advantage of trading using opposite RETAIL FOOD and SIEM OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RETAIL FOOD position performs unexpectedly, SIEM OFFSHORE 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 SIEM OFFSHORE will offset losses from the drop in SIEM OFFSHORE's long position.| RETAIL FOOD vs. Amkor Technology | RETAIL FOOD vs. LANDSEA HOMES P | RETAIL FOOD vs. IMPERIAL TOBACCO | RETAIL FOOD vs. FARO Technologies |
| SIEM OFFSHORE vs. Pembina Pipeline Corp | SIEM OFFSHORE vs. SIVERS SEMICONDUCTORS AB | SIEM OFFSHORE vs. Intel | SIEM OFFSHORE vs. E3 LITHIUM LTD |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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