Correlation Between Shunfeng International and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Shunfeng International 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 Shunfeng International and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shunfeng International Clean and Superior Plus Corp, you can compare the effects of market volatilities on Shunfeng International 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 Shunfeng International with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shunfeng International and Superior Plus.
Diversification Opportunities for Shunfeng International and Superior Plus
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shunfeng and Superior is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shunfeng International Clean 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 Shunfeng International 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 Shunfeng International Clean 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 Shunfeng International i.e., Shunfeng International and Superior Plus go up and down completely randomly.
Pair Corralation between Shunfeng International and Superior Plus
Assuming the 90 days horizon Shunfeng International Clean is expected to generate 24.29 times more return on investment than Superior Plus. However, Shunfeng International is 24.29 times more volatile than Superior Plus Corp. It trades about 0.08 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.02 per unit of risk. If you would invest 0.10 in Shunfeng International Clean on September 12, 2024 and sell it today you would earn a total of 0.30 from holding Shunfeng International Clean or generate 300.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shunfeng International Clean vs. Superior Plus Corp
Performance |
| Timeline |
| Shunfeng International |
| Superior Plus Corp |
Shunfeng International and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shunfeng International and Superior Plus
The main advantage of trading using opposite Shunfeng International and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shunfeng International 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.| Shunfeng International vs. Sunrun Inc | Shunfeng International vs. SMA Solar Technology | Shunfeng International vs. Superior Plus Corp | Shunfeng International vs. SIVERS SEMICONDUCTORS AB |
| Superior Plus vs. AIR PRODCHEMICALS | Superior Plus vs. Suntory Beverage Food | Superior Plus vs. Molson Coors Beverage | Superior Plus vs. Monster Beverage Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |