Correlation Between Superior Plus and Sportsmans Warehouse
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Sportsmans Warehouse 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 Superior Plus and Sportsmans Warehouse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and Sportsmans Warehouse Holdings, you can compare the effects of market volatilities on Superior Plus and Sportsmans Warehouse 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 Superior Plus with a short position of Sportsmans Warehouse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Sportsmans Warehouse.
Diversification Opportunities for Superior Plus and Sportsmans Warehouse
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Superior and Sportsmans is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Sportsmans Warehouse Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsmans Warehouse and Superior Plus 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 Superior Plus Corp are associated (or correlated) with Sportsmans Warehouse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsmans Warehouse has no effect on the direction of Superior Plus i.e., Superior Plus and Sportsmans Warehouse go up and down completely randomly.
Pair Corralation between Superior Plus and Sportsmans Warehouse
Assuming the 90 days horizon Superior Plus Corp is expected to generate 0.85 times more return on investment than Sportsmans Warehouse. However, Superior Plus Corp is 1.17 times less risky than Sportsmans Warehouse. It trades about -0.02 of its potential returns per unit of risk. Sportsmans Warehouse Holdings is currently generating about -0.08 per unit of risk. If you would invest 472.00 in Superior Plus Corp on September 13, 2024 and sell it today you would lose (32.00) from holding Superior Plus Corp or give up 6.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Sportsmans Warehouse Holdings
Performance |
| Timeline |
| Superior Plus Corp |
| Sportsmans Warehouse |
Superior Plus and Sportsmans Warehouse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Sportsmans Warehouse
The main advantage of trading using opposite Superior Plus and Sportsmans Warehouse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Sportsmans Warehouse 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 Sportsmans Warehouse will offset losses from the drop in Sportsmans Warehouse's long position.| Superior Plus vs. HF SINCLAIR P | Superior Plus vs. PT Indofood Sukses | Superior Plus vs. SENECA FOODS A | Superior Plus vs. ScanSource |
| Sportsmans Warehouse vs. Superior Plus Corp | Sportsmans Warehouse vs. SIVERS SEMICONDUCTORS AB | Sportsmans Warehouse vs. Norsk Hydro ASA | Sportsmans Warehouse vs. Reliance Steel Aluminum |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |