Correlation Between High Wire and SEATech Ventures

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

By analyzing existing cross correlation between High Wire Networks and SEATech Ventures Corp, you can compare the effects of market volatilities on High Wire and SEATech Ventures 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 High Wire with a short position of SEATech Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Wire and SEATech Ventures.

Diversification Opportunities for High Wire and SEATech Ventures

0.3

Correlation Coefficient

High Wire  SEATech Ventures

Weak diversification

The 3 months correlation between High and SEATech is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding High Wire Networks and SEATech Ventures Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEATech Ventures Corp and High Wire 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 High Wire Networks are associated (or correlated) with SEATech Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEATech Ventures Corp has no effect on the direction of High Wire i.e., High Wire and SEATech Ventures go up and down completely randomly.

Pair Corralation between High Wire and SEATech Ventures

Given the investment horizon of 90 days High Wire Networks is expected to generate 2.32 times more return on investment than SEATech Ventures. However, High Wire is 2.32 times more volatile than SEATech Ventures Corp. It trades about 0.07 of its potential returns per unit of risk. SEATech Ventures Corp is currently generating about -0.06 per unit of risk. If you would invest  3.73  in High Wire Networks on December 28, 2024 and sell it today you would earn a total of  0.27  from holding High Wire Networks or generate 7.24% return on investment over 90 days.

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

High Wire Networks  vs.  SEATech Ventures Corp

High Wire Networks

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in High Wire Networks are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, High Wire demonstrated solid returns over the last few months and may actually be approaching a breakup point.

SEATech Ventures Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days SEATech Ventures Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with High Wire and SEATech Ventures

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

The idea behind High Wire Networks and SEATech Ventures Corp 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.