Correlation Between SEIKOH GIKEN and Teradata Corp

Can any of the company-specific risk be diversified away by investing in both SEIKOH GIKEN and Teradata Corp 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 SEIKOH GIKEN and Teradata Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SEIKOH GIKEN Co and Teradata Corp, you can compare the effects of market volatilities on SEIKOH GIKEN and Teradata Corp 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 SEIKOH GIKEN with a short position of Teradata Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEIKOH GIKEN and Teradata Corp.

Diversification Opportunities for SEIKOH GIKEN and Teradata Corp

0.0

Correlation Coefficient

SEIKOH GIKEN  Teradata Corp

Pay attention - limited upside

The 3 months correlation between SEIKOH and Teradata is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SEIKOH GIKEN Co and Teradata Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teradata Corp and SEIKOH GIKEN 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 SEIKOH GIKEN Co are associated (or correlated) with Teradata Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teradata Corp has no effect on the direction of SEIKOH GIKEN i.e., SEIKOH GIKEN and Teradata Corp go up and down completely randomly.

Pair Corralation between SEIKOH GIKEN and Teradata Corp

If you would invest  1,275  in SEIKOH GIKEN Co on September 24, 2024 and sell it today you would earn a total of  0.00  from holding SEIKOH GIKEN Co or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.41%
Values	Daily Returns

SEIKOH GIKEN Co  vs.  Teradata Corp

SEIKOH GIKEN

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SEIKOH GIKEN Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking signals, SEIKOH GIKEN is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Teradata Corp

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Teradata Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Teradata Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SEIKOH GIKEN and Teradata Corp

The main advantage of trading using opposite SEIKOH GIKEN and Teradata Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEIKOH GIKEN position performs unexpectedly, Teradata Corp 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 Teradata Corp will offset losses from the drop in Teradata Corp's long position.

The idea behind SEIKOH GIKEN Co and Teradata Corp 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.