Correlation Between SEEK and TRI CHEMICAL

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

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

Diversification Opportunities for SEEK and TRI CHEMICAL

-0.03

Correlation Coefficient

SEEK  TRI CHEMICAL

Good diversification

The 3 months correlation between SEEK and TRI is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding SEEK Limited and TRI CHEMICAL LABORATINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRI CHEMICAL LABORATINC and SEEK 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 SEEK Limited are associated (or correlated) with TRI CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRI CHEMICAL LABORATINC has no effect on the direction of SEEK i.e., SEEK and TRI CHEMICAL go up and down completely randomly.

Pair Corralation between SEEK and TRI CHEMICAL

Assuming the 90 days horizon SEEK Limited is expected to generate 0.6 times more return on investment than TRI CHEMICAL. However, SEEK Limited is 1.66 times less risky than TRI CHEMICAL. It trades about 0.11 of its potential returns per unit of risk. TRI CHEMICAL LABORATINC is currently generating about 0.02 per unit of risk. If you would invest  1,250  in SEEK Limited on May 18, 2025 and sell it today you would earn a total of  130.00  from holding SEEK Limited or generate 10.4% return on investment over 90 days.

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

SEEK Limited  vs.  TRI CHEMICAL LABORATINC

SEEK Limited

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in SEEK Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SEEK may actually be approaching a critical reversion point that can send shares even higher in September 2025.

TRI CHEMICAL LABORATINC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TRI CHEMICAL LABORATINC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, TRI CHEMICAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SEEK and TRI CHEMICAL

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

The idea behind SEEK Limited and TRI CHEMICAL LABORATINC 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.

Check out your portfolio center.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.