Correlation Between STILLFRONT GRP and Sea

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

By analyzing existing cross correlation between STILLFRONT GRP AB and Sea Limited, you can compare the effects of market volatilities on STILLFRONT GRP and Sea 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 STILLFRONT GRP with a short position of Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of STILLFRONT GRP and Sea.

Diversification Opportunities for STILLFRONT GRP and Sea

0.6

Correlation Coefficient

STILLFRONT GRP  Sea

Poor diversification

The 3 months correlation between STILLFRONT and Sea is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding STILLFRONT GRP AB and Sea Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea Limited and STILLFRONT GRP 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 STILLFRONT GRP AB are associated (or correlated) with Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea Limited has no effect on the direction of STILLFRONT GRP i.e., STILLFRONT GRP and Sea go up and down completely randomly.

Pair Corralation between STILLFRONT GRP and Sea

Assuming the 90 days trading horizon STILLFRONT GRP AB is expected to under-perform the Sea. In addition to that, STILLFRONT GRP is 1.22 times more volatile than Sea Limited. It trades about -0.04 of its total potential returns per unit of risk. Sea Limited is currently generating about 0.11 per unit of volatility. If you would invest  4,185  in Sea Limited on October 5, 2024 and sell it today you would earn a total of  5,975  from holding Sea Limited or generate 142.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.68%
Values	Daily Returns

STILLFRONT GRP AB  vs.  Sea Limited

STILLFRONT GRP AB

Risk-Adjusted Performance

9 of 100

OK

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

Sea Limited

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Sea Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly unsteady basic indicators, Sea reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with STILLFRONT GRP and Sea

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

The idea behind STILLFRONT GRP AB and Sea Limited 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.