Correlation Between FirstGroup Plc and Seino Holdings

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

By analyzing existing cross correlation between FirstGroup plc and Seino Holdings Co, you can compare the effects of market volatilities on FirstGroup Plc and Seino Holdings 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 FirstGroup Plc with a short position of Seino Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of FirstGroup Plc and Seino Holdings.

Diversification Opportunities for FirstGroup Plc and Seino Holdings

-0.82

Correlation Coefficient

FirstGroup Plc  Seino Holdings

Pay attention - limited upside

The 3 months correlation between FirstGroup and Seino is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding FirstGroup plc and Seino Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seino Holdings and FirstGroup Plc 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 FirstGroup plc are associated (or correlated) with Seino Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seino Holdings has no effect on the direction of FirstGroup Plc i.e., FirstGroup Plc and Seino Holdings go up and down completely randomly.

Pair Corralation between FirstGroup Plc and Seino Holdings

Assuming the 90 days horizon FirstGroup plc is expected to generate 2.03 times more return on investment than Seino Holdings. However, FirstGroup Plc is 2.03 times more volatile than Seino Holdings Co. It trades about 0.23 of its potential returns per unit of risk. Seino Holdings Co is currently generating about -0.11 per unit of risk. If you would invest  189.00  in FirstGroup plc on April 23, 2025 and sell it today you would earn a total of  64.00  from holding FirstGroup plc or generate 33.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

FirstGroup plc  vs.  Seino Holdings Co

FirstGroup plc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in FirstGroup plc are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, FirstGroup Plc reported solid returns over the last few months and may actually be approaching a breakup point.

Seino Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Seino Holdings Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with FirstGroup Plc and Seino Holdings

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

The idea behind FirstGroup plc and Seino Holdings Co 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.