Correlation Between PH Tech and SeAH Bestee

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

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

Diversification Opportunities for PH Tech and SeAH Bestee

-0.42

Correlation Coefficient

PH Tech  SeAH Bestee

Very good diversification

The 3 months correlation between 239890 and SeAH is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding PH Tech Co and SeAH Bestee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeAH Bestee and PH Tech 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 PH Tech Co are associated (or correlated) with SeAH Bestee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SeAH Bestee has no effect on the direction of PH Tech i.e., PH Tech and SeAH Bestee go up and down completely randomly.

Pair Corralation between PH Tech and SeAH Bestee

Assuming the 90 days trading horizon PH Tech Co is expected to under-perform the SeAH Bestee. In addition to that, PH Tech is 1.05 times more volatile than SeAH Bestee. It trades about -0.12 of its total potential returns per unit of risk. SeAH Bestee is currently generating about 0.04 per unit of volatility. If you would invest  1,913,000  in SeAH Bestee on September 12, 2024 and sell it today you would earn a total of  97,000  from holding SeAH Bestee or generate 5.07% return on investment over 90 days.

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

PH Tech Co  vs.  SeAH Bestee

PH Tech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PH Tech Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

SeAH Bestee

Risk-Adjusted Performance

3 of 100

Insignificant

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

Pair Trading with PH Tech and SeAH Bestee

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

The idea behind PH Tech Co and SeAH Bestee 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.