Correlation Between SEIKOH GIKEN and Pure Storage

Can any of the company-specific risk be diversified away by investing in both SEIKOH GIKEN and Pure Storage 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 Pure Storage 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 Pure Storage, you can compare the effects of market volatilities on SEIKOH GIKEN and Pure Storage 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 Pure Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEIKOH GIKEN and Pure Storage.

Diversification Opportunities for SEIKOH GIKEN and Pure Storage

0.0

Correlation Coefficient

SEIKOH GIKEN  Pure Storage

Pay attention - limited upside

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

Pair Corralation between SEIKOH GIKEN and Pure Storage

If you would invest  4,837  in Pure Storage on September 23, 2024 and sell it today you would earn a total of  1,124  from holding Pure Storage or generate 23.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	97.73%
Values	Daily Returns

SEIKOH GIKEN Co  vs.  Pure Storage

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.

Pure Storage

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pure Storage are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Pure Storage reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SEIKOH GIKEN and Pure Storage

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

The idea behind SEIKOH GIKEN Co and Pure Storage 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.