Correlation Between COPLAND ROAD and SEEK

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

By analyzing existing cross correlation between COPLAND ROAD CAPITAL and SEEK Limited, you can compare the effects of market volatilities on COPLAND ROAD and SEEK 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 COPLAND ROAD with a short position of SEEK. Check out your portfolio center. Please also check ongoing floating volatility patterns of COPLAND ROAD and SEEK.

Diversification Opportunities for COPLAND ROAD and SEEK

0.31

Correlation Coefficient

COPLAND ROAD  SEEK

Weak diversification

The 3 months correlation between COPLAND and SEEK is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding COPLAND ROAD CAPITAL and SEEK Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEEK Limited and COPLAND ROAD 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 COPLAND ROAD CAPITAL are associated (or correlated) with SEEK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEEK Limited has no effect on the direction of COPLAND ROAD i.e., COPLAND ROAD and SEEK go up and down completely randomly.

Pair Corralation between COPLAND ROAD and SEEK

Assuming the 90 days horizon COPLAND ROAD CAPITAL is expected to under-perform the SEEK. In addition to that, COPLAND ROAD is 1.51 times more volatile than SEEK Limited. It trades about 0.0 of its total potential returns per unit of risk. SEEK Limited is currently generating about 0.14 per unit of volatility. If you would invest  1,340  in SEEK Limited on May 25, 2025 and sell it today you would earn a total of  200.00  from holding SEEK Limited or generate 14.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.48%
Values	Daily Returns

COPLAND ROAD CAPITAL  vs.  SEEK Limited

COPLAND ROAD CAPITAL

Risk-Adjusted Performance

Weakest

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

SEEK Limited

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in SEEK Limited are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SEEK reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with COPLAND ROAD and SEEK

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

The idea behind COPLAND ROAD CAPITAL and SEEK Limited 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.