Correlation Between SEATech Ventures and ASGN

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

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

Diversification Opportunities for SEATech Ventures and ASGN

-0.18

Correlation Coefficient

SEATech Ventures  ASGN

Good diversification

The 3 months correlation between SEATech and ASGN is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SEATech Ventures Corp and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and SEATech Ventures 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 SEATech Ventures Corp are associated (or correlated) with ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of SEATech Ventures i.e., SEATech Ventures and ASGN go up and down completely randomly.

Pair Corralation between SEATech Ventures and ASGN

Given the investment horizon of 90 days SEATech Ventures Corp is expected to generate 27.59 times more return on investment than ASGN. However, SEATech Ventures is 27.59 times more volatile than ASGN Inc. It trades about 0.13 of its potential returns per unit of risk. ASGN Inc is currently generating about -0.09 per unit of risk. If you would invest  3.20  in SEATech Ventures Corp on November 19, 2024 and sell it today you would earn a total of  0.50  from holding SEATech Ventures Corp or generate 15.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

SEATech Ventures Corp  vs.  ASGN Inc

SEATech Ventures Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SEATech Ventures Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, SEATech Ventures showed solid returns over the last few months and may actually be approaching a breakup point.

ASGN Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASGN Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with SEATech Ventures and ASGN

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

The idea behind SEATech Ventures Corp and ASGN Inc 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.