Correlation Between SEEK and DATAGROUP

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

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

Diversification Opportunities for SEEK and DATAGROUP

0.23

Correlation Coefficient

SEEK  DATAGROUP

Modest diversification

The 3 months correlation between SEEK and DATAGROUP is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding SEEK Limited and DATAGROUP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATAGROUP SE 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 DATAGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATAGROUP SE has no effect on the direction of SEEK i.e., SEEK and DATAGROUP go up and down completely randomly.

Pair Corralation between SEEK and DATAGROUP

Assuming the 90 days horizon SEEK Limited is expected to generate 1.62 times more return on investment than DATAGROUP. However, SEEK is 1.62 times more volatile than DATAGROUP SE. It trades about 0.09 of its potential returns per unit of risk. DATAGROUP SE is currently generating about 0.07 per unit of risk. If you would invest  1,280  in SEEK Limited on May 16, 2025 and sell it today you would earn a total of  110.00  from holding SEEK Limited or generate 8.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

SEEK Limited  vs.  DATAGROUP SE

SEEK Limited

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in SEEK Limited are ranked lower than 7 (%) 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.

DATAGROUP SE

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in DATAGROUP SE are ranked lower than 5 (%) 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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SEEK and DATAGROUP

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

The idea behind SEEK Limited and DATAGROUP SE 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.