Correlation Between SERI INDUSTRIAL and GAMING FAC
Can any of the company-specific risk be diversified away by investing in both SERI INDUSTRIAL and GAMING FAC 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 SERI INDUSTRIAL and GAMING FAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SERI INDUSTRIAL EO and GAMING FAC SA, you can compare the effects of market volatilities on SERI INDUSTRIAL and GAMING FAC 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 SERI INDUSTRIAL with a short position of GAMING FAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SERI INDUSTRIAL and GAMING FAC.
Diversification Opportunities for SERI INDUSTRIAL and GAMING FAC
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SERI and GAMING is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding SERI INDUSTRIAL EO and GAMING FAC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMING FAC SA and SERI INDUSTRIAL 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 SERI INDUSTRIAL EO are associated (or correlated) with GAMING FAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMING FAC SA has no effect on the direction of SERI INDUSTRIAL i.e., SERI INDUSTRIAL and GAMING FAC go up and down completely randomly.
Pair Corralation between SERI INDUSTRIAL and GAMING FAC
Assuming the 90 days trading horizon SERI INDUSTRIAL EO is expected to under-perform the GAMING FAC. In addition to that, SERI INDUSTRIAL is 1.05 times more volatile than GAMING FAC SA. It trades about -0.03 of its total potential returns per unit of risk. GAMING FAC SA is currently generating about 0.03 per unit of volatility. If you would invest 121.00 in GAMING FAC SA on September 26, 2024 and sell it today you would earn a total of 34.00 from holding GAMING FAC SA or generate 28.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SERI INDUSTRIAL EO vs. GAMING FAC SA
Performance |
Timeline |
SERI INDUSTRIAL EO |
GAMING FAC SA |
SERI INDUSTRIAL and GAMING FAC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SERI INDUSTRIAL and GAMING FAC
The main advantage of trading using opposite SERI INDUSTRIAL and GAMING FAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SERI INDUSTRIAL position performs unexpectedly, GAMING FAC 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 GAMING FAC will offset losses from the drop in GAMING FAC's long position.SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc |
GAMING FAC vs. MGIC INVESTMENT | GAMING FAC vs. SERI INDUSTRIAL EO | GAMING FAC vs. PennantPark Investment | GAMING FAC vs. SEI 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Money Managers Screen money managers from public funds and ETFs managed around the world |