Correlation Between RETAIL FOOD and SEEK

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

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

Diversification Opportunities for RETAIL FOOD and SEEK

-0.89

Correlation Coefficient

RETAIL FOOD  SEEK

Pay attention - limited upside

The 3 months correlation between RETAIL and SEEK is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP and SEEK Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEEK Limited and RETAIL FOOD 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 RETAIL FOOD GROUP 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 RETAIL FOOD i.e., RETAIL FOOD and SEEK go up and down completely randomly.

Pair Corralation between RETAIL FOOD and SEEK

Assuming the 90 days trading horizon RETAIL FOOD GROUP is expected to under-perform the SEEK. In addition to that, RETAIL FOOD is 1.83 times more volatile than SEEK Limited. It trades about -0.2 of its total potential returns per unit of risk. SEEK Limited is currently generating about 0.15 per unit of volatility. If you would invest  1,319  in SEEK Limited on July 17, 2025 and sell it today you would earn a total of  211.00  from holding SEEK Limited or generate 16.0% return on investment over 90 days.

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

RETAIL FOOD GROUP  vs.  SEEK Limited

RETAIL FOOD GROUP

Risk-Adjusted Performance

Weakest

Over the last 90 days RETAIL FOOD GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

SEEK Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SEEK Limited are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, SEEK reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with RETAIL FOOD and SEEK

The main advantage of trading using opposite RETAIL FOOD and SEEK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RETAIL FOOD 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 RETAIL FOOD GROUP 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.