Correlation Between Clean Seas and Southern Cross

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

By analyzing existing cross correlation between Clean Seas Seafood and Southern Cross Media, you can compare the effects of market volatilities on Clean Seas and Southern Cross 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 Clean Seas with a short position of Southern Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Seas and Southern Cross.

Diversification Opportunities for Clean Seas and Southern Cross

0.17

Correlation Coefficient

Clean Seas  Southern Cross

Average diversification

The 3 months correlation between Clean and Southern is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Clean Seas Seafood and Southern Cross Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Cross Media and Clean Seas 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 Clean Seas Seafood are associated (or correlated) with Southern Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Cross Media has no effect on the direction of Clean Seas i.e., Clean Seas and Southern Cross go up and down completely randomly.

Pair Corralation between Clean Seas and Southern Cross

Assuming the 90 days trading horizon Clean Seas Seafood is expected to under-perform the Southern Cross. In addition to that, Clean Seas is 1.68 times more volatile than Southern Cross Media. It trades about -0.03 of its total potential returns per unit of risk. Southern Cross Media is currently generating about -0.02 per unit of volatility. If you would invest  88.00  in Southern Cross Media on March 31, 2025 and sell it today you would lose (34.00) from holding Southern Cross Media or give up 38.64% of portfolio value over 90 days.

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

Clean Seas Seafood  vs.  Southern Cross Media

Clean Seas Seafood

Risk-Adjusted Performance

Very Weak

Over the last 90 days Clean Seas Seafood has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Clean Seas is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Southern Cross Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days Southern Cross Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in July 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Clean Seas and Southern Cross

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

The idea behind Clean Seas Seafood and Southern Cross Media 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.