Correlation Between SB Technology and SEATech Ventures

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

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

Diversification Opportunities for SB Technology and SEATech Ventures

0.0

Correlation Coefficient

SB Technology  SEATech Ventures

Pay attention - limited upside

The 3 months correlation between SFBTF and SEATech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SB Technology Corp 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 SB Technology 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 SB Technology Corp 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 SB Technology i.e., SB Technology and SEATech Ventures go up and down completely randomly.

Pair Corralation between SB Technology and SEATech Ventures

If you would invest  3.20  in SEATech Ventures Corp on November 28, 2024 and sell it today you would earn a total of  0.00  from holding SEATech Ventures Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SB Technology Corp  vs.  SEATech Ventures Corp

SB Technology Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days SB Technology Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SB Technology is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

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.

Pair Trading with SB Technology and SEATech Ventures

The main advantage of trading using opposite SB Technology and SEATech Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SB Technology 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 SB Technology Corp 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.