Correlation Between Sea and GENERAL
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By analyzing existing cross correlation between Sea and GENERAL DYNAMICS P, you can compare the effects of market volatilities on Sea and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea and GENERAL.
Diversification Opportunities for Sea and GENERAL
Pay attention - limited upside
The 3 months correlation between Sea and GENERAL is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sea and GENERAL DYNAMICS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL DYNAMICS P 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL DYNAMICS P has no effect on the direction of Sea i.e., Sea and GENERAL go up and down completely randomly.
Pair Corralation between Sea and GENERAL
Allowing for the 90-day total investment horizon Sea is expected to generate 9.28 times more return on investment than GENERAL. However, Sea is 9.28 times more volatile than GENERAL DYNAMICS P. It trades about 0.04 of its potential returns per unit of risk. GENERAL DYNAMICS P is currently generating about -0.01 per unit of risk. If you would invest 8,433 in Sea on August 29, 2024 and sell it today you would earn a total of 2,960 from holding Sea or generate 35.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.49% |
| Values | Daily Returns |
Sea vs. GENERAL DYNAMICS P
Performance |
| Timeline |
| Sea |
| GENERAL DYNAMICS P |
Sea and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea and GENERAL
The main advantage of trading using opposite Sea and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Sea vs. Atari SA | Sea vs. Victory Square Technologies | Sea vs. Motorsport Gaming Us | Sea vs. Alpha Esports Tech |
| GENERAL vs. The Coca Cola | GENERAL vs. JPMorgan Chase Co | GENERAL vs. Dupont De Nemours | GENERAL vs. Alcoa Corp |
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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