Correlation Between SERI INDUSTRIAL and SECURITAS

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

By analyzing existing cross correlation between SERI INDUSTRIAL EO and SECURITAS B , you can compare the effects of market volatilities on SERI INDUSTRIAL and SECURITAS 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 SERI INDUSTRIAL with a short position of SECURITAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SERI INDUSTRIAL and SECURITAS.

Diversification Opportunities for SERI INDUSTRIAL and SECURITAS

-0.39

Correlation Coefficient

SERI INDUSTRIAL  SECURITAS

Very good diversification

The 3 months correlation between SERI and SECURITAS is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SERI INDUSTRIAL EO and SECURITAS B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECURITAS B and SERI INDUSTRIAL 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 SERI INDUSTRIAL EO are associated (or correlated) with SECURITAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECURITAS B has no effect on the direction of SERI INDUSTRIAL i.e., SERI INDUSTRIAL and SECURITAS go up and down completely randomly.

Pair Corralation between SERI INDUSTRIAL and SECURITAS

Assuming the 90 days trading horizon SERI INDUSTRIAL EO is expected to generate 1.72 times more return on investment than SECURITAS. However, SERI INDUSTRIAL is 1.72 times more volatile than SECURITAS B . It trades about 0.04 of its potential returns per unit of risk. SECURITAS B is currently generating about 0.0 per unit of risk. If you would invest  195.00  in SERI INDUSTRIAL EO on April 24, 2025 and sell it today you would earn a total of  10.00  from holding SERI INDUSTRIAL EO or generate 5.13% return on investment over 90 days.

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

SERI INDUSTRIAL EO  vs.  SECURITAS B

SERI INDUSTRIAL EO

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SERI INDUSTRIAL EO are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, SERI INDUSTRIAL may actually be approaching a critical reversion point that can send shares even higher in August 2025.

SECURITAS B

Risk-Adjusted Performance

Very Weak

Over the last 90 days SECURITAS B has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SECURITAS 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 SERI INDUSTRIAL and SECURITAS

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

The idea behind SERI INDUSTRIAL EO and SECURITAS B 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.