Correlation Between Sea and Permanent TSB
Can any of the company-specific risk be diversified away by investing in both Sea and Permanent TSB 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 Permanent TSB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sea and Permanent TSB Group, you can compare the effects of market volatilities on Sea and Permanent TSB 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 Permanent TSB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea and Permanent TSB.
Diversification Opportunities for Sea and Permanent TSB
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sea and Permanent is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sea and Permanent TSB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Permanent TSB Group 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 Permanent TSB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Permanent TSB Group has no effect on the direction of Sea i.e., Sea and Permanent TSB go up and down completely randomly.
Pair Corralation between Sea and Permanent TSB
If you would invest 9,519 in Sea on September 4, 2024 and sell it today you would earn a total of 1,805 from holding Sea or generate 18.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sea vs. Permanent TSB Group
Performance |
| Timeline |
| Sea |
| Permanent TSB Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sea and Permanent TSB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea and Permanent TSB
The main advantage of trading using opposite Sea and Permanent TSB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea position performs unexpectedly, Permanent TSB 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 Permanent TSB will offset losses from the drop in Permanent TSB's long position.| Sea vs. Atari SA | Sea vs. Victory Square Technologies | Sea vs. Motorsport Gaming Us | Sea vs. Alpha Esports Tech |
| Permanent TSB vs. LENSAR Inc | Permanent TSB vs. Ryman Hospitality Properties | Permanent TSB vs. Esperion Therapeutics | Permanent TSB vs. Sonida Senior Living |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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