Correlation Between Seraphim Space and Central Asia
Can any of the company-specific risk be diversified away by investing in both Seraphim Space and Central Asia 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 Seraphim Space and Central Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seraphim Space Investment and Central Asia Metals, you can compare the effects of market volatilities on Seraphim Space and Central Asia 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 Seraphim Space with a short position of Central Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seraphim Space and Central Asia.
Diversification Opportunities for Seraphim Space and Central Asia
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Seraphim and Central is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Seraphim Space Investment and Central Asia Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Asia Metals and Seraphim Space 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 Seraphim Space Investment are associated (or correlated) with Central Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Asia Metals has no effect on the direction of Seraphim Space i.e., Seraphim Space and Central Asia go up and down completely randomly.
Pair Corralation between Seraphim Space and Central Asia
Assuming the 90 days trading horizon Seraphim Space Investment is expected to under-perform the Central Asia. But the stock apears to be less risky and, when comparing its historical volatility, Seraphim Space Investment is 1.06 times less risky than Central Asia. The stock trades about -0.33 of its potential returns per unit of risk. The Central Asia Metals is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 16,800 in Central Asia Metals on October 12, 2024 and sell it today you would lose (900.00) from holding Central Asia Metals or give up 5.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seraphim Space Investment vs. Central Asia Metals
Performance |
| Timeline |
| Seraphim Space Investment |
| Central Asia Metals |
Seraphim Space and Central Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seraphim Space and Central Asia
The main advantage of trading using opposite Seraphim Space and Central Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seraphim Space position performs unexpectedly, Central Asia 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 Central Asia will offset losses from the drop in Central Asia's long position.| Seraphim Space vs. Systemair AB | Seraphim Space vs. Norman Broadbent Plc | Seraphim Space vs. JB Hunt Transport | Seraphim Space vs. Coeur Mining |
| Central Asia vs. Diversified Energy | Central Asia vs. Seraphim Space Investment | Central Asia vs. Bankers Investment Trust | Central Asia vs. Mineral Financial Investments |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |