Correlation Between SEEK and TechnoPro Holdings
Can any of the company-specific risk be diversified away by investing in both SEEK and TechnoPro Holdings 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 SEEK and TechnoPro Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEEK Limited and TechnoPro Holdings, you can compare the effects of market volatilities on SEEK and TechnoPro Holdings 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 SEEK with a short position of TechnoPro Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEEK and TechnoPro Holdings.
Diversification Opportunities for SEEK and TechnoPro Holdings
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SEEK and TechnoPro is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding SEEK Limited and TechnoPro Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechnoPro Holdings and SEEK 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 SEEK Limited are associated (or correlated) with TechnoPro Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechnoPro Holdings has no effect on the direction of SEEK i.e., SEEK and TechnoPro Holdings go up and down completely randomly.
Pair Corralation between SEEK and TechnoPro Holdings
Assuming the 90 days horizon SEEK Limited is expected to generate 0.82 times more return on investment than TechnoPro Holdings. However, SEEK Limited is 1.22 times less risky than TechnoPro Holdings. It trades about -0.02 of its potential returns per unit of risk. TechnoPro Holdings is currently generating about -0.03 per unit of risk. If you would invest 1,411 in SEEK Limited on September 3, 2024 and sell it today you would lose (94.00) from holding SEEK Limited or give up 6.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 63.16% |
| Values | Daily Returns |
SEEK Limited vs. TechnoPro Holdings
Performance |
| Timeline |
| SEEK Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TechnoPro Holdings |
SEEK and TechnoPro Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEEK and TechnoPro Holdings
The main advantage of trading using opposite SEEK and TechnoPro Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEEK position performs unexpectedly, TechnoPro Holdings 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 TechnoPro Holdings will offset losses from the drop in TechnoPro Holdings' long position.The idea behind SEEK Limited and TechnoPro Holdings 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.| TechnoPro Holdings vs. Hire Technologies | TechnoPro Holdings vs. The Caldwell Partners | TechnoPro Holdings vs. Trucept | TechnoPro Holdings vs. Futuris Company |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |