Correlation Between GENERAL and Sea
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By analyzing existing cross correlation between GENERAL DYNAMICS P and Sea, you can compare the effects of market volatilities on GENERAL 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 GENERAL with a short position of Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and Sea.
Diversification Opportunities for GENERAL and Sea
Pay attention - limited upside
The 3 months correlation between GENERAL and Sea is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL DYNAMICS P and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea and GENERAL 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 GENERAL DYNAMICS P 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 GENERAL i.e., GENERAL and Sea go up and down completely randomly.
Pair Corralation between GENERAL and Sea
Assuming the 90 days trading horizon GENERAL DYNAMICS P is expected to under-perform the Sea. But the bond apears to be less risky and, when comparing its historical volatility, GENERAL DYNAMICS P is 9.28 times less risky than Sea. The bond trades about -0.01 of its potential returns per unit of risk. The Sea is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,433 in Sea on August 29, 2024 and sell it today you would earn a total of 2,960 from holding Sea or generate 35.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.49% |
| Values | Daily Returns |
GENERAL DYNAMICS P vs. Sea
Performance |
| Timeline |
| GENERAL DYNAMICS P |
| Sea |
GENERAL and Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and Sea
The main advantage of trading using opposite GENERAL and Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL 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.| GENERAL vs. The Coca Cola | GENERAL vs. JPMorgan Chase Co | GENERAL vs. Dupont De Nemours | GENERAL vs. Alcoa Corp |
| Sea vs. Atari SA | Sea vs. Victory Square Technologies | Sea vs. Motorsport Gaming Us | Sea vs. Alpha Esports Tech |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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