Correlation Between S E and Lery Seafood

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

By analyzing existing cross correlation between S E BANKEN A and Lery Seafood Group, you can compare the effects of market volatilities on S E and Lery Seafood 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 S E with a short position of Lery Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of S E and Lery Seafood.

Diversification Opportunities for S E and Lery Seafood

0.85

Correlation Coefficient

S E  Lery Seafood

Very poor diversification

The 3 months correlation between SEBA and Lery is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding S E BANKEN A and Lery Seafood Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lery Seafood Group and S E 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 S E BANKEN A are associated (or correlated) with Lery Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lery Seafood Group has no effect on the direction of S E i.e., S E and Lery Seafood go up and down completely randomly.

Pair Corralation between S E and Lery Seafood

Assuming the 90 days trading horizon S E BANKEN A is expected to generate 0.7 times more return on investment than Lery Seafood. However, S E BANKEN A is 1.42 times less risky than Lery Seafood. It trades about 0.15 of its potential returns per unit of risk. Lery Seafood Group is currently generating about 0.08 per unit of risk. If you would invest  1,340  in S E BANKEN A on April 24, 2025 and sell it today you would earn a total of  144.00  from holding S E BANKEN A or generate 10.75% return on investment over 90 days.

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

S E BANKEN A   vs.  Lery Seafood Group

S E BANKEN

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in S E BANKEN A are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, S E may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Lery Seafood Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Lery Seafood Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Lery Seafood may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with S E and Lery Seafood

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

The idea behind S E BANKEN A and Lery Seafood Group 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.

Check out your portfolio center.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.