Correlation Between Fnac Darty and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Fnac Darty and Superior Plus 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 Fnac Darty and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fnac Darty SA and Superior Plus Corp, you can compare the effects of market volatilities on Fnac Darty and Superior Plus 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 Fnac Darty with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fnac Darty and Superior Plus.
Diversification Opportunities for Fnac Darty and Superior Plus
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fnac and Superior is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Fnac Darty SA and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp and Fnac Darty 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 Fnac Darty SA are associated (or correlated) with Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Fnac Darty i.e., Fnac Darty and Superior Plus go up and down completely randomly.
Pair Corralation between Fnac Darty and Superior Plus
Assuming the 90 days horizon Fnac Darty SA is expected to generate 1.68 times more return on investment than Superior Plus. However, Fnac Darty is 1.68 times more volatile than Superior Plus Corp. It trades about 0.13 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.16 per unit of risk. If you would invest 2,770 in Fnac Darty SA on November 28, 2024 and sell it today you would earn a total of 200.00 from holding Fnac Darty SA or generate 7.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fnac Darty SA vs. Superior Plus Corp
Performance |
| Timeline |
| Fnac Darty SA |
| Superior Plus Corp |
Fnac Darty and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fnac Darty and Superior Plus
The main advantage of trading using opposite Fnac Darty and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fnac Darty position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Fnac Darty vs. MercadoLibre | Fnac Darty vs. AutoZone | Fnac Darty vs. Tractor Supply | Fnac Darty vs. Ulta Beauty |
| Superior Plus vs. Easy Software AG | Superior Plus vs. COSMOSTEEL HLDGS | Superior Plus vs. CHAMPION IRON | Superior Plus vs. KOBE STEEL LTD |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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