Correlation Between Interactive Strength and Sea

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Can any of the company-specific risk be diversified away by investing in both Interactive Strength and Sea 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 Interactive Strength and Sea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interactive Strength Common and Sea, you can compare the effects of market volatilities on Interactive Strength and Sea 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 Interactive Strength with a short position of Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interactive Strength and Sea.

Diversification Opportunities for Interactive Strength and Sea

InteractiveSeaDiversified AwayInteractiveSeaDiversified Away100%
-0.25
  Correlation Coefficient

Very good diversification

The 3 months correlation between Interactive and Sea is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Strength Common and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea and Interactive Strength 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 Interactive Strength Common are associated (or correlated) with Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea has no effect on the direction of Interactive Strength i.e., Interactive Strength and Sea go up and down completely randomly.

Pair Corralation between Interactive Strength and Sea

Given the investment horizon of 90 days Interactive Strength Common is expected to under-perform the Sea. In addition to that, Interactive Strength is 3.14 times more volatile than Sea. It trades about -0.16 of its total potential returns per unit of risk. Sea is currently generating about 0.06 per unit of volatility. If you would invest  6,356  in Sea on November 21, 2024 and sell it today you would earn a total of  7,139  from holding Sea or generate 112.32% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy91.89%
ValuesDaily Returns

Interactive Strength Common  vs.  Sea

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 50100150200
JavaScript chart by amCharts 3.21.15TRNR SE
       Timeline  
Interactive Strength 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Interactive Strength Common has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.522.533.54
Sea 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Sea are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Sea exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb105110115120125130135

Interactive Strength and Sea Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-12.39-9.28-6.17-3.06-0.04152.414.97.399.8812.37 0.010.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15TRNR SE
       Returns  

Pair Trading with Interactive Strength and Sea

The main advantage of trading using opposite Interactive Strength and Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interactive Strength position performs unexpectedly, Sea 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 Sea will offset losses from the drop in Sea's long position.
The idea behind Interactive Strength Common and Sea 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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