Correlation Between Prosus NV and SEEK
Can any of the company-specific risk be diversified away by investing in both Prosus NV and SEEK 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 Prosus NV and SEEK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosus NV and SEEK Limited, you can compare the effects of market volatilities on Prosus NV and SEEK 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 Prosus NV with a short position of SEEK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosus NV and SEEK.
Diversification Opportunities for Prosus NV and SEEK
Pay attention - limited upside
The 3 months correlation between Prosus and SEEK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Prosus NV and SEEK Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEEK Limited and Prosus NV 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 Prosus NV are associated (or correlated) with SEEK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEEK Limited has no effect on the direction of Prosus NV i.e., Prosus NV and SEEK go up and down completely randomly.
Pair Corralation between Prosus NV and SEEK
If you would invest 3,908 in Prosus NV on December 21, 2024 and sell it today you would earn a total of 499.00 from holding Prosus NV or generate 12.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 1.69% |
Values | Daily Returns |
Prosus NV vs. SEEK Limited
Performance |
Timeline |
Prosus NV |
SEEK Limited |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Prosus NV and SEEK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Prosus NV and SEEK
The main advantage of trading using opposite Prosus NV and SEEK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosus NV position performs unexpectedly, SEEK 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 SEEK will offset losses from the drop in SEEK's long position.Prosus NV vs. Thai Beverage Public | Prosus NV vs. Gold Road Resources | Prosus NV vs. Molson Coors Beverage | Prosus NV vs. BOSTON BEER A |
SEEK vs. APPLIED MATERIALS | SEEK vs. Gruppo Mutuionline SpA | SEEK vs. Mitsubishi Materials | SEEK vs. GungHo Online Entertainment |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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