Correlation Between SEATech Ventures and ASGN
Can any of the company-specific risk be diversified away by investing in both SEATech Ventures and ASGN 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 ASGN 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 ASGN Inc, you can compare the effects of market volatilities on SEATech Ventures and ASGN 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 ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEATech Ventures and ASGN.
Diversification Opportunities for SEATech Ventures and ASGN
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between SEATech and ASGN is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding SEATech Ventures Corp and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc 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 ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of SEATech Ventures i.e., SEATech Ventures and ASGN go up and down completely randomly.
Pair Corralation between SEATech Ventures and ASGN
Given the investment horizon of 90 days SEATech Ventures Corp is expected to generate 18.15 times more return on investment than ASGN. However, SEATech Ventures is 18.15 times more volatile than ASGN Inc. It trades about 0.11 of its potential returns per unit of risk. ASGN Inc is currently generating about -0.01 per unit of risk. If you would invest 3.60 in SEATech Ventures Corp on August 31, 2024 and sell it today you would lose (0.40) from holding SEATech Ventures Corp or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEATech Ventures Corp vs. ASGN Inc
Performance |
| Timeline |
| SEATech Ventures Corp |
| ASGN Inc |
SEATech Ventures and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEATech Ventures and ASGN
The main advantage of trading using opposite SEATech Ventures and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEATech Ventures position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.| SEATech Ventures vs. Kontrol Technologies Corp | SEATech Ventures vs. Xalles Holdings | SEATech Ventures vs. GBT Technologies | SEATech Ventures vs. Alternet Systems |
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 CEOs Directory module to screen CEOs from public companies around the world.
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