Correlation Between SEATech Ventures and Appen
Can any of the company-specific risk be diversified away by investing in both SEATech Ventures and Appen 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 SEATech Ventures and Appen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEATech Ventures Corp and Appen Limited, you can compare the effects of market volatilities on SEATech Ventures and Appen 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 SEATech Ventures with a short position of Appen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEATech Ventures and Appen.
Diversification Opportunities for SEATech Ventures and Appen
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between SEATech and Appen is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SEATech Ventures Corp and Appen Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appen Limited and SEATech Ventures 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 SEATech Ventures Corp are associated (or correlated) with Appen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appen Limited has no effect on the direction of SEATech Ventures i.e., SEATech Ventures and Appen go up and down completely randomly.
Pair Corralation between SEATech Ventures and Appen
Given the investment horizon of 90 days SEATech Ventures Corp is expected to generate 3.84 times more return on investment than Appen. However, SEATech Ventures is 3.84 times more volatile than Appen Limited. It trades about 0.13 of its potential returns per unit of risk. Appen Limited is currently generating about 0.09 per unit of risk. If you would invest 38.00 in SEATech Ventures Corp on September 2, 2024 and sell it today you would lose (34.80) from holding SEATech Ventures Corp or give up 91.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
SEATech Ventures Corp vs. Appen Limited
Performance |
| Timeline |
| SEATech Ventures Corp |
| Appen Limited |
SEATech Ventures and Appen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEATech Ventures and Appen
The main advantage of trading using opposite SEATech Ventures and Appen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEATech Ventures position performs unexpectedly, Appen 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 Appen will offset losses from the drop in Appen's long position.| SEATech Ventures vs. Kontrol Technologies Corp | SEATech Ventures vs. Xalles Holdings | SEATech Ventures vs. GBT Technologies | SEATech Ventures vs. Alternet Systems |
| Appen vs. Appen Limited | Appen vs. Direct Communication Solutions | Appen vs. Capgemini SE ADR | Appen vs. Quisitive Technology Solutions |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |