Correlation Between SIEM OFFSHORE and Brinker International

Can any of the company-specific risk be diversified away by investing in both SIEM OFFSHORE and Brinker International 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 SIEM OFFSHORE and Brinker International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SIEM OFFSHORE NEW and Brinker International, you can compare the effects of market volatilities on SIEM OFFSHORE and Brinker International 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 SIEM OFFSHORE with a short position of Brinker International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIEM OFFSHORE and Brinker International.

Diversification Opportunities for SIEM OFFSHORE and Brinker International

0.01

Correlation Coefficient

SIEM OFFSHORE  Brinker International

Significant diversification

The 3 months correlation between SIEM and Brinker is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding SIEM OFFSHORE NEW and Brinker International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinker International and SIEM OFFSHORE 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 SIEM OFFSHORE NEW are associated (or correlated) with Brinker International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinker International has no effect on the direction of SIEM OFFSHORE i.e., SIEM OFFSHORE and Brinker International go up and down completely randomly.

Pair Corralation between SIEM OFFSHORE and Brinker International

Assuming the 90 days trading horizon SIEM OFFSHORE is expected to generate 196.48 times less return on investment than Brinker International. In addition to that, SIEM OFFSHORE is 1.17 times more volatile than Brinker International. It trades about 0.0 of its total potential returns per unit of risk. Brinker International is currently generating about 0.19 per unit of volatility. If you would invest  10,800  in Brinker International on September 12, 2024 and sell it today you would earn a total of  1,200  from holding Brinker International or generate 11.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

SIEM OFFSHORE NEW  vs.  Brinker International

SIEM OFFSHORE NEW

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days SIEM OFFSHORE NEW has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, SIEM OFFSHORE is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Brinker International

Risk-Adjusted Performance

27 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Brinker International are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Brinker International reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SIEM OFFSHORE and Brinker International

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

The idea behind SIEM OFFSHORE NEW and Brinker International 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.