Correlation Between Sea and GENERAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sea and GENERAL DYNAMICS PORATION, 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 -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sea and GENERAL DYNAMICS PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL DYNAMICS PORATION 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 PORATION 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 6.09 times more return on investment than GENERAL. However, Sea is 6.09 times more volatile than GENERAL DYNAMICS PORATION. It trades about 0.12 of its potential returns per unit of risk. GENERAL DYNAMICS PORATION is currently generating about 0.02 per unit of risk. If you would invest 3,867 in Sea on September 12, 2024 and sell it today you would earn a total of 7,338 from holding Sea or generate 189.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Sea vs. GENERAL DYNAMICS PORATION
Performance |
| Timeline |
| Sea |
| GENERAL DYNAMICS PORATION |
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.The idea behind Sea and GENERAL DYNAMICS PORATION pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| GENERAL vs. Apogee Enterprises | GENERAL vs. Genfit | GENERAL vs. Tarsus Pharmaceuticals | GENERAL vs. Valneva SE ADR |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |