Correlation Between Sands China and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Sands China 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 Sands China and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sands China and Superior Plus Corp, you can compare the effects of market volatilities on Sands China 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 Sands China with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sands China and Superior Plus.
Diversification Opportunities for Sands China and Superior Plus
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sands and Superior is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sands China 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 Sands China 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 Sands China 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 Sands China i.e., Sands China and Superior Plus go up and down completely randomly.
Pair Corralation between Sands China and Superior Plus
Assuming the 90 days trading horizon Sands China is expected to generate 1.34 times more return on investment than Superior Plus. However, Sands China is 1.34 times more volatile than Superior Plus Corp. It trades about 0.23 of its potential returns per unit of risk. Superior Plus Corp is currently generating about 0.19 per unit of risk. If you would invest 230.00 in Sands China on September 15, 2024 and sell it today you would earn a total of 32.00 from holding Sands China or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sands China vs. Superior Plus Corp
Performance |
| Timeline |
| Sands China |
| Superior Plus Corp |
Sands China and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sands China and Superior Plus
The main advantage of trading using opposite Sands China and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sands China 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.| Sands China vs. The Boston Beer | Sands China vs. Suntory Beverage Food | Sands China vs. PT Ace Hardware | Sands China vs. THAI BEVERAGE |
| Superior Plus vs. Nissan Chemical Corp | Superior Plus vs. Japan Medical Dynamic | Superior Plus vs. Sanyo Chemical Industries | Superior Plus vs. MeVis Medical Solutions |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |