Correlation Between 031162DP2 and Sea
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By analyzing existing cross correlation between AMGN 515 02 MAR 28 and Sea, you can compare the effects of market volatilities on 031162DP2 and Sea 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 031162DP2 with a short position of Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of 031162DP2 and Sea.
Diversification Opportunities for 031162DP2 and Sea
Pay attention - limited upside
The 3 months correlation between 031162DP2 and Sea is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding AMGN 515 02 MAR 28 and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea and 031162DP2 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 AMGN 515 02 MAR 28 are associated (or correlated) with Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea has no effect on the direction of 031162DP2 i.e., 031162DP2 and Sea go up and down completely randomly.
Pair Corralation between 031162DP2 and Sea
Assuming the 90 days trading horizon AMGN 515 02 MAR 28 is expected to under-perform the Sea. But the bond apears to be less risky and, when comparing its historical volatility, AMGN 515 02 MAR 28 is 4.02 times less risky than Sea. The bond trades about -0.17 of its potential returns per unit of risk. The Sea is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 10,765 in Sea on September 13, 2024 and sell it today you would earn a total of 974.00 from holding Sea or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
AMGN 515 02 MAR 28 vs. Sea
Performance |
| Timeline |
| AMGN 515 02 |
| Sea |
031162DP2 and Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 031162DP2 and Sea
The main advantage of trading using opposite 031162DP2 and Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 031162DP2 position performs unexpectedly, Sea 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 Sea will offset losses from the drop in Sea's long position.| 031162DP2 vs. BBB Foods | 031162DP2 vs. Village Super Market | 031162DP2 vs. National Beverage Corp | 031162DP2 vs. Willamette Valley Vineyards |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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