Correlation Between SERI INDUSTRIAL and WICKES GROUP
Can any of the company-specific risk be diversified away by investing in both SERI INDUSTRIAL and WICKES GROUP 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 SERI INDUSTRIAL and WICKES GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SERI INDUSTRIAL EO and WICKES GROUP PLC, you can compare the effects of market volatilities on SERI INDUSTRIAL and WICKES GROUP 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 SERI INDUSTRIAL with a short position of WICKES GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SERI INDUSTRIAL and WICKES GROUP.
Diversification Opportunities for SERI INDUSTRIAL and WICKES GROUP
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SERI and WICKES is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SERI INDUSTRIAL EO and WICKES GROUP PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WICKES GROUP PLC and SERI INDUSTRIAL 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 SERI INDUSTRIAL EO are associated (or correlated) with WICKES GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WICKES GROUP PLC has no effect on the direction of SERI INDUSTRIAL i.e., SERI INDUSTRIAL and WICKES GROUP go up and down completely randomly.
Pair Corralation between SERI INDUSTRIAL and WICKES GROUP
Assuming the 90 days trading horizon SERI INDUSTRIAL EO is expected to under-perform the WICKES GROUP. In addition to that, SERI INDUSTRIAL is 2.38 times more volatile than WICKES GROUP PLC. It trades about -0.08 of its total potential returns per unit of risk. WICKES GROUP PLC is currently generating about 0.02 per unit of volatility. If you would invest 204.00 in WICKES GROUP PLC on October 31, 2024 and sell it today you would earn a total of 2.00 from holding WICKES GROUP PLC or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SERI INDUSTRIAL EO vs. WICKES GROUP PLC
Performance |
| Timeline |
| SERI INDUSTRIAL EO |
| WICKES GROUP PLC |
SERI INDUSTRIAL and WICKES GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SERI INDUSTRIAL and WICKES GROUP
The main advantage of trading using opposite SERI INDUSTRIAL and WICKES GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SERI INDUSTRIAL position performs unexpectedly, WICKES GROUP 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 WICKES GROUP will offset losses from the drop in WICKES GROUP's long position.| SERI INDUSTRIAL vs. AEGEAN AIRLINES | SERI INDUSTRIAL vs. BJs Restaurants | SERI INDUSTRIAL vs. KENEDIX OFFICE INV | SERI INDUSTRIAL vs. SWISS WATER DECAFFCOFFEE |
| WICKES GROUP vs. The Home Depot | WICKES GROUP vs. The Home Depot | WICKES GROUP vs. Floor Decor Holdings | WICKES GROUP vs. LESLIES INC DL |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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