Correlation Between Superior Plus and La Française
Can any of the company-specific risk be diversified away by investing in both Superior Plus and La Française 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 La Française 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 La Franaise des, you can compare the effects of market volatilities on Superior Plus and La Française 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 La Française. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and La Française.
Diversification Opportunities for Superior Plus and La Française
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and 1WE is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and La Franaise des in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Franaise des 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 La Française. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Franaise des has no effect on the direction of Superior Plus i.e., Superior Plus and La Française go up and down completely randomly.
Pair Corralation between Superior Plus and La Française
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the La Française. In addition to that, Superior Plus is 1.63 times more volatile than La Franaise des. It trades about -0.02 of its total potential returns per unit of risk. La Franaise des is currently generating about 0.01 per unit of volatility. If you would invest 3,568 in La Franaise des on September 3, 2024 and sell it today you would earn a total of 158.00 from holding La Franaise des or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. La Franaise des
Performance |
| Timeline |
| Superior Plus Corp |
| La Franaise des |
Superior Plus and La Française Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and La Française
The main advantage of trading using opposite Superior Plus and La Française positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, La Française 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 La Française will offset losses from the drop in La Française's long position.| Superior Plus vs. Collins Foods Limited | Superior Plus vs. Thai Beverage Public | Superior Plus vs. ADRIATIC METALS LS 013355 | Superior Plus vs. Lifeway Foods |
| La Française vs. Bausch Health Companies | La Française vs. SENECA FOODS A | La Française vs. Ramsay Health Care | La Française vs. NXP Semiconductors NV |
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 CEOs Directory module to screen CEOs from public companies around the world.
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