Correlation Between Sea and Reebonz Holding
Can any of the company-specific risk be diversified away by investing in both Sea and Reebonz Holding 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 Reebonz Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sea and Reebonz Holding, you can compare the effects of market volatilities on Sea and Reebonz Holding 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 Reebonz Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea and Reebonz Holding.
Diversification Opportunities for Sea and Reebonz Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sea and Reebonz is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sea and Reebonz Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reebonz Holding 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 Reebonz Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reebonz Holding has no effect on the direction of Sea i.e., Sea and Reebonz Holding go up and down completely randomly.
Pair Corralation between Sea and Reebonz Holding
If you would invest 3,674 in Sea on August 25, 2024 and sell it today you would earn a total of 7,630 from holding Sea or generate 207.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Sea vs. Reebonz Holding
Performance |
| Timeline |
| Sea |
| Reebonz Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sea and Reebonz Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea and Reebonz Holding
The main advantage of trading using opposite Sea and Reebonz Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea position performs unexpectedly, Reebonz Holding 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 Reebonz Holding will offset losses from the drop in Reebonz Holding's long position.| Sea vs. Atari SA | Sea vs. Victory Square Technologies | Sea vs. Motorsport Gaming Us | Sea vs. Alpha Esports Tech |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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