Correlation Between Corero Network and Seeing Machines

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

By analyzing existing cross correlation between Corero Network Security and Seeing Machines Limited, you can compare the effects of market volatilities on Corero Network and Seeing Machines 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 Corero Network with a short position of Seeing Machines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corero Network and Seeing Machines.

Diversification Opportunities for Corero Network and Seeing Machines

-0.61

Correlation Coefficient

Corero Network  Seeing Machines

Excellent diversification

The 3 months correlation between Corero and Seeing is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Corero Network Security and Seeing Machines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seeing Machines and Corero Network 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 Corero Network Security are associated (or correlated) with Seeing Machines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seeing Machines has no effect on the direction of Corero Network i.e., Corero Network and Seeing Machines go up and down completely randomly.

Pair Corralation between Corero Network and Seeing Machines

Assuming the 90 days trading horizon Corero Network Security is expected to under-perform the Seeing Machines. In addition to that, Corero Network is 1.15 times more volatile than Seeing Machines Limited. It trades about -0.18 of its total potential returns per unit of risk. Seeing Machines Limited is currently generating about 0.22 per unit of volatility. If you would invest  170.00  in Seeing Machines Limited on April 22, 2025 and sell it today you would earn a total of  125.00  from holding Seeing Machines Limited or generate 73.53% return on investment over 90 days.

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

Corero Network Security  vs.  Seeing Machines Limited

Corero Network Security

Risk-Adjusted Performance

Very Weak

Over the last 90 days Corero Network Security 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 technical and fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Seeing Machines

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Seeing Machines Limited are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Seeing Machines exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Corero Network and Seeing Machines

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

The idea behind Corero Network Security and Seeing Machines 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.