Correlation Between Superior Plus and FRASERS PROPERTY
Can any of the company-specific risk be diversified away by investing in both Superior Plus and FRASERS PROPERTY 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 FRASERS PROPERTY 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 FRASERS PROPERTY, you can compare the effects of market volatilities on Superior Plus and FRASERS PROPERTY 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 FRASERS PROPERTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and FRASERS PROPERTY.
Diversification Opportunities for Superior Plus and FRASERS PROPERTY
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Superior and FRASERS is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and FRASERS PROPERTY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRASERS PROPERTY 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 FRASERS PROPERTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRASERS PROPERTY has no effect on the direction of Superior Plus i.e., Superior Plus and FRASERS PROPERTY go up and down completely randomly.
Pair Corralation between Superior Plus and FRASERS PROPERTY
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the FRASERS PROPERTY. In addition to that, Superior Plus is 3.18 times more volatile than FRASERS PROPERTY. It trades about -0.01 of its total potential returns per unit of risk. FRASERS PROPERTY is currently generating about 0.19 per unit of volatility. If you would invest 60.00 in FRASERS PROPERTY on August 29, 2024 and sell it today you would earn a total of 4.00 from holding FRASERS PROPERTY or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. FRASERS PROPERTY
Performance |
| Timeline |
| Superior Plus Corp |
| FRASERS PROPERTY |
Superior Plus and FRASERS PROPERTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and FRASERS PROPERTY
The main advantage of trading using opposite Superior Plus and FRASERS PROPERTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, FRASERS PROPERTY 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 FRASERS PROPERTY will offset losses from the drop in FRASERS PROPERTY's long position.| Superior Plus vs. Meli Hotels International | Superior Plus vs. InterContinental Hotels Group | Superior Plus vs. PT Bank Maybank | Superior Plus vs. Pebblebrook Hotel Trust |
| FRASERS PROPERTY vs. Sumitomo Mitsui Construction | FRASERS PROPERTY vs. WIMFARM SA EO | FRASERS PROPERTY vs. PACIFIC ONLINE | FRASERS PROPERTY vs. CarsalesCom |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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