Correlation Between Superior Plus and 2G ENERGY
Can any of the company-specific risk be diversified away by investing in both Superior Plus and 2G ENERGY 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 2G ENERGY 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 2G ENERGY , you can compare the effects of market volatilities on Superior Plus and 2G ENERGY 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 2G ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and 2G ENERGY.
Diversification Opportunities for Superior Plus and 2G ENERGY
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and 2GB is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and 2G ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 2G ENERGY 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 2G ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 2G ENERGY has no effect on the direction of Superior Plus i.e., Superior Plus and 2G ENERGY go up and down completely randomly.
Pair Corralation between Superior Plus and 2G ENERGY
Assuming the 90 days horizon Superior Plus Corp is expected to generate 1.77 times more return on investment than 2G ENERGY. However, Superior Plus is 1.77 times more volatile than 2G ENERGY . It trades about 0.02 of its potential returns per unit of risk. 2G ENERGY is currently generating about 0.01 per unit of risk. If you would invest 426.00 in Superior Plus Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Superior Plus Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Superior Plus Corp vs. 2G ENERGY
Performance |
| Timeline |
| Superior Plus Corp |
| 2G ENERGY |
Superior Plus and 2G ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and 2G ENERGY
The main advantage of trading using opposite Superior Plus and 2G ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, 2G ENERGY 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 2G ENERGY will offset losses from the drop in 2G ENERGY's long position.| Superior Plus vs. TSOGO SUN GAMING | Superior Plus vs. FUTURE GAMING GRP | Superior Plus vs. TROPHY GAMES DEV | Superior Plus vs. Boyd Gaming |
| 2G ENERGY vs. Australian Agricultural | 2G ENERGY vs. Ultra Clean Holdings | 2G ENERGY vs. Charter Communications | 2G ENERGY vs. Consolidated Communications Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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