Correlation Between CLPS and SEATech Ventures

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

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

Diversification Opportunities for CLPS and SEATech Ventures

0.19

Correlation Coefficient

CLPS  SEATech Ventures

Average diversification

The 3 months correlation between CLPS and SEATech is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CLPS Inc 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 CLPS 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 CLPS Inc 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 CLPS i.e., CLPS and SEATech Ventures go up and down completely randomly.

Pair Corralation between CLPS and SEATech Ventures

Given the investment horizon of 90 days CLPS Inc is expected to under-perform the SEATech Ventures. But the stock apears to be less risky and, when comparing its historical volatility, CLPS Inc is 17.59 times less risky than SEATech Ventures. The stock trades about -0.05 of its potential returns per unit of risk. The SEATech Ventures Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1.60  in SEATech Ventures Corp on May 20, 2025 and sell it today you would lose (0.20) from holding SEATech Ventures Corp or give up 12.5% of portfolio value over 90 days.

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

CLPS Inc  vs.  SEATech Ventures Corp

CLPS Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days CLPS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

SEATech Ventures Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in SEATech Ventures Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, SEATech Ventures showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CLPS and SEATech Ventures

The main advantage of trading using opposite CLPS and SEATech Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLPS 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 CLPS Inc 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.