Correlation Between SERI INDUSTRIAL and REDSUN PROPERTIES
Can any of the company-specific risk be diversified away by investing in both SERI INDUSTRIAL and REDSUN PROPERTIES 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 REDSUN PROPERTIES 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 REDSUN PROPERTIES GROUP, you can compare the effects of market volatilities on SERI INDUSTRIAL and REDSUN PROPERTIES 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 REDSUN PROPERTIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of SERI INDUSTRIAL and REDSUN PROPERTIES.
Diversification Opportunities for SERI INDUSTRIAL and REDSUN PROPERTIES
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between SERI and REDSUN is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SERI INDUSTRIAL EO and REDSUN PROPERTIES GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REDSUN PROPERTIES 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 REDSUN PROPERTIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REDSUN PROPERTIES has no effect on the direction of SERI INDUSTRIAL i.e., SERI INDUSTRIAL and REDSUN PROPERTIES go up and down completely randomly.
Pair Corralation between SERI INDUSTRIAL and REDSUN PROPERTIES
Assuming the 90 days trading horizon SERI INDUSTRIAL EO is expected to under-perform the REDSUN PROPERTIES. But the stock apears to be less risky and, when comparing its historical volatility, SERI INDUSTRIAL EO is 6.38 times less risky than REDSUN PROPERTIES. The stock trades about -0.04 of its potential returns per unit of risk. The REDSUN PROPERTIES GROUP is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4.65 in REDSUN PROPERTIES GROUP on November 6, 2024 and sell it today you would lose (4.40) from holding REDSUN PROPERTIES GROUP or give up 94.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SERI INDUSTRIAL EO vs. REDSUN PROPERTIES GROUP
Performance |
| Timeline |
| SERI INDUSTRIAL EO |
| REDSUN PROPERTIES |
SERI INDUSTRIAL and REDSUN PROPERTIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SERI INDUSTRIAL and REDSUN PROPERTIES
The main advantage of trading using opposite SERI INDUSTRIAL and REDSUN PROPERTIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SERI INDUSTRIAL position performs unexpectedly, REDSUN PROPERTIES 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 REDSUN PROPERTIES will offset losses from the drop in REDSUN PROPERTIES's long position.| SERI INDUSTRIAL vs. PKSHA TECHNOLOGY INC | SERI INDUSTRIAL vs. BioNTech SE | SERI INDUSTRIAL vs. Easy Software AG | SERI INDUSTRIAL vs. Amkor Technology |
| REDSUN PROPERTIES vs. China Resources Land | REDSUN PROPERTIES vs. SEAZEN GROUP LTD | REDSUN PROPERTIES vs. Atrium Ljungberg AB | REDSUN PROPERTIES vs. GANGLONG CHINA PRGRLTD |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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