Correlation Between FOKUS MINING and Seaboard

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

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

Diversification Opportunities for FOKUS MINING and Seaboard

-0.36

Correlation Coefficient

FOKUS MINING  Seaboard

Very good diversification

The 3 months correlation between FOKUS and Seaboard is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding FOKUS MINING P and Seaboard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seaboard and FOKUS MINING 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 FOKUS MINING P are associated (or correlated) with Seaboard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seaboard has no effect on the direction of FOKUS MINING i.e., FOKUS MINING and Seaboard go up and down completely randomly.

Pair Corralation between FOKUS MINING and Seaboard

Assuming the 90 days trading horizon FOKUS MINING P is expected to under-perform the Seaboard. In addition to that, FOKUS MINING is 2.97 times more volatile than Seaboard. It trades about -0.05 of its total potential returns per unit of risk. Seaboard is currently generating about 0.19 per unit of volatility. If you would invest  227,769  in Seaboard on May 4, 2025 and sell it today you would earn a total of  48,231  from holding Seaboard or generate 21.18% return on investment over 90 days.

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

FOKUS MINING P  vs.  Seaboard

FOKUS MINING P

Risk-Adjusted Performance

Very Weak

Over the last 90 days FOKUS MINING P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Seaboard

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Seaboard are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Seaboard reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FOKUS MINING and Seaboard

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

The idea behind FOKUS MINING P and Seaboard 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.