Correlation Between Moderate Strategy and Seafarer Overseas

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

By analyzing existing cross correlation between Moderate Strategy Fund and Seafarer Overseas Growth, you can compare the effects of market volatilities on Moderate Strategy and Seafarer Overseas 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 Moderate Strategy with a short position of Seafarer Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moderate Strategy and Seafarer Overseas.

Diversification Opportunities for Moderate Strategy and Seafarer Overseas

0.0

Correlation Coefficient

Moderate Strategy  Seafarer Overseas

Pay attention - limited upside

The 3 months correlation between Moderate and Seafarer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Moderate Strategy Fund and Seafarer Overseas Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seafarer Overseas Growth and Moderate Strategy 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 Moderate Strategy Fund are associated (or correlated) with Seafarer Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seafarer Overseas Growth has no effect on the direction of Moderate Strategy i.e., Moderate Strategy and Seafarer Overseas go up and down completely randomly.

Pair Corralation between Moderate Strategy and Seafarer Overseas

If you would invest  1,267  in Seafarer Overseas Growth on May 10, 2025 and sell it today you would earn a total of  100.00  from holding Seafarer Overseas Growth or generate 7.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Moderate Strategy Fund  vs.  Seafarer Overseas Growth

Moderate Strategy

Risk-Adjusted Performance

Solid

Over the last 90 days Moderate Strategy Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Moderate Strategy is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Seafarer Overseas Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Seafarer Overseas Growth are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Seafarer Overseas may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Moderate Strategy and Seafarer Overseas

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

The idea behind Moderate Strategy Fund and Seafarer Overseas Growth 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.