Correlation Between Superior Plus and SQUIRREL MEDIA
Can any of the company-specific risk be diversified away by investing in both Superior Plus and SQUIRREL MEDIA 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 SQUIRREL MEDIA 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 SQUIRREL MEDIA SA, you can compare the effects of market volatilities on Superior Plus and SQUIRREL MEDIA 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 SQUIRREL MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and SQUIRREL MEDIA.
Diversification Opportunities for Superior Plus and SQUIRREL MEDIA
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Superior and SQUIRREL is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and SQUIRREL MEDIA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SQUIRREL MEDIA SA 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 SQUIRREL MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SQUIRREL MEDIA SA has no effect on the direction of Superior Plus i.e., Superior Plus and SQUIRREL MEDIA go up and down completely randomly.
Pair Corralation between Superior Plus and SQUIRREL MEDIA
Assuming the 90 days horizon Superior Plus Corp is expected to generate 0.91 times more return on investment than SQUIRREL MEDIA. However, Superior Plus Corp is 1.09 times less risky than SQUIRREL MEDIA. It trades about -0.03 of its potential returns per unit of risk. SQUIRREL MEDIA SA is currently generating about -0.04 per unit of risk. If you would invest 624.00 in Superior Plus Corp on October 16, 2024 and sell it today you would lose (206.00) from holding Superior Plus Corp or give up 33.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Superior Plus Corp vs. SQUIRREL MEDIA SA
Performance |
| Timeline |
| Superior Plus Corp |
| SQUIRREL MEDIA SA |
Superior Plus and SQUIRREL MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and SQUIRREL MEDIA
The main advantage of trading using opposite Superior Plus and SQUIRREL MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, SQUIRREL MEDIA 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 SQUIRREL MEDIA will offset losses from the drop in SQUIRREL MEDIA's long position.| Superior Plus vs. COSTCO WHOLESALE CDR | Superior Plus vs. ARISTOCRAT LEISURE | Superior Plus vs. Burlington Stores | Superior Plus vs. SPARTAN STORES |
| SQUIRREL MEDIA vs. Warner Music Group | SQUIRREL MEDIA vs. Superior Plus Corp | SQUIRREL MEDIA vs. NMI Holdings | SQUIRREL MEDIA vs. SIVERS SEMICONDUCTORS AB |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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