Correlation Between SIEM OFFSHORE and GREENLIGHT CAP
Can any of the company-specific risk be diversified away by investing in both SIEM OFFSHORE and GREENLIGHT CAP 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 SIEM OFFSHORE and GREENLIGHT CAP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIEM OFFSHORE NEW and GREENLIGHT CAP RE, you can compare the effects of market volatilities on SIEM OFFSHORE and GREENLIGHT CAP 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 SIEM OFFSHORE with a short position of GREENLIGHT CAP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIEM OFFSHORE and GREENLIGHT CAP.
Diversification Opportunities for SIEM OFFSHORE and GREENLIGHT CAP
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SIEM and GREENLIGHT is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding SIEM OFFSHORE NEW and GREENLIGHT CAP RE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENLIGHT CAP RE and SIEM OFFSHORE 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 SIEM OFFSHORE NEW are associated (or correlated) with GREENLIGHT CAP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENLIGHT CAP RE has no effect on the direction of SIEM OFFSHORE i.e., SIEM OFFSHORE and GREENLIGHT CAP go up and down completely randomly.
Pair Corralation between SIEM OFFSHORE and GREENLIGHT CAP
Assuming the 90 days trading horizon SIEM OFFSHORE NEW is expected to under-perform the GREENLIGHT CAP. In addition to that, SIEM OFFSHORE is 4.96 times more volatile than GREENLIGHT CAP RE. It trades about -0.03 of its total potential returns per unit of risk. GREENLIGHT CAP RE is currently generating about -0.02 per unit of volatility. If you would invest 1,320 in GREENLIGHT CAP RE on November 6, 2024 and sell it today you would lose (10.00) from holding GREENLIGHT CAP RE or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SIEM OFFSHORE NEW vs. GREENLIGHT CAP RE
Performance |
| Timeline |
| SIEM OFFSHORE NEW |
| GREENLIGHT CAP RE |
SIEM OFFSHORE and GREENLIGHT CAP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIEM OFFSHORE and GREENLIGHT CAP
The main advantage of trading using opposite SIEM OFFSHORE and GREENLIGHT CAP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIEM OFFSHORE position performs unexpectedly, GREENLIGHT CAP 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 GREENLIGHT CAP will offset losses from the drop in GREENLIGHT CAP's long position.| SIEM OFFSHORE vs. TOREX SEMICONDUCTOR LTD | SIEM OFFSHORE vs. TRI CHEMICAL LABORATINC | SIEM OFFSHORE vs. AIR PRODCHEMICALS | SIEM OFFSHORE vs. Taiwan Semiconductor Manufacturing |
| GREENLIGHT CAP vs. Kingdee International Software | GREENLIGHT CAP vs. National Health Investors | GREENLIGHT CAP vs. RCI Hospitality Holdings | GREENLIGHT CAP vs. Sunny Optical Technology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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