Correlation Between DATAGROUP and SEEK

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

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

Diversification Opportunities for DATAGROUP and SEEK

0.39

Correlation Coefficient

DATAGROUP  SEEK

Weak diversification

The 3 months correlation between DATAGROUP and SEEK is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding DATAGROUP SE and SEEK Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEEK Limited and DATAGROUP 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 DATAGROUP SE 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 DATAGROUP i.e., DATAGROUP and SEEK go up and down completely randomly.

Pair Corralation between DATAGROUP and SEEK

Assuming the 90 days trading horizon DATAGROUP SE is expected to under-perform the SEEK. But the stock apears to be less risky and, when comparing its historical volatility, DATAGROUP SE is 1.16 times less risky than SEEK. The stock trades about -0.24 of its potential returns per unit of risk. The SEEK Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,330  in SEEK Limited on May 14, 2025 and sell it today you would earn a total of  20.00  from holding SEEK Limited or generate 1.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

DATAGROUP SE  vs.  SEEK Limited

DATAGROUP SE

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in DATAGROUP SE are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical indicators, DATAGROUP is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

SEEK Limited

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in SEEK Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, SEEK is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with DATAGROUP and SEEK

The main advantage of trading using opposite DATAGROUP and SEEK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATAGROUP 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 DATAGROUP SE 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.