Correlation Between Sea and FactSet Research
Can any of the company-specific risk be diversified away by investing in both Sea and FactSet Research 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 Sea and FactSet Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sea and FactSet Research Systems, you can compare the effects of market volatilities on Sea and FactSet Research 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 Sea with a short position of FactSet Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea and FactSet Research.
Diversification Opportunities for Sea and FactSet Research
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sea and FactSet is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sea and FactSet Research Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FactSet Research Systems and Sea 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 Sea are associated (or correlated) with FactSet Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FactSet Research Systems has no effect on the direction of Sea i.e., Sea and FactSet Research go up and down completely randomly.
Pair Corralation between Sea and FactSet Research
Allowing for the 90-day total investment horizon Sea is expected to generate 2.67 times more return on investment than FactSet Research. However, Sea is 2.67 times more volatile than FactSet Research Systems. It trades about 0.05 of its potential returns per unit of risk. FactSet Research Systems is currently generating about 0.05 per unit of risk. If you would invest 7,600 in Sea on August 26, 2024 and sell it today you would earn a total of 3,704 from holding Sea or generate 48.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sea vs. FactSet Research Systems
Performance |
| Timeline |
| Sea |
| FactSet Research Systems |
Sea and FactSet Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea and FactSet Research
The main advantage of trading using opposite Sea and FactSet Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea position performs unexpectedly, FactSet Research 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 FactSet Research will offset losses from the drop in FactSet Research's long position.| Sea vs. Atari SA | Sea vs. Victory Square Technologies | Sea vs. Motorsport Gaming Us | Sea vs. Alpha Esports Tech |
| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Intercontinental Exchange |
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 CEOs Directory module to screen CEOs from public companies around the world.
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