Correlation Between Humasis and Seegene

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

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

Diversification Opportunities for Humasis and Seegene

0.5

Correlation Coefficient

Humasis  Seegene

Very weak diversification

The 3 months correlation between Humasis and Seegene is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Humasis Co and Seegene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seegene and Humasis 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 Humasis Co are associated (or correlated) with Seegene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seegene has no effect on the direction of Humasis i.e., Humasis and Seegene go up and down completely randomly.

Pair Corralation between Humasis and Seegene

Assuming the 90 days trading horizon Humasis Co is expected to under-perform the Seegene. In addition to that, Humasis is 1.02 times more volatile than Seegene. It trades about -0.05 of its total potential returns per unit of risk. Seegene is currently generating about 0.05 per unit of volatility. If you would invest  2,261,833  in Seegene on December 30, 2024 and sell it today you would earn a total of  133,167  from holding Seegene or generate 5.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Humasis Co  vs.  Seegene

Humasis

Risk-Adjusted Performance

Very Weak

Over the last 90 days Humasis Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Seegene

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Seegene are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Seegene may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Humasis and Seegene

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

The idea behind Humasis Co and Seegene 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.