Correlation Between Superior Plus and GENTING SG
Can any of the company-specific risk be diversified away by investing in both Superior Plus and GENTING SG 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 GENTING SG 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 GENTING SG LTD, you can compare the effects of market volatilities on Superior Plus and GENTING SG 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 GENTING SG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and GENTING SG.
Diversification Opportunities for Superior Plus and GENTING SG
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Superior and GENTING is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and GENTING SG LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENTING SG LTD 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 GENTING SG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENTING SG LTD has no effect on the direction of Superior Plus i.e., Superior Plus and GENTING SG go up and down completely randomly.
Pair Corralation between Superior Plus and GENTING SG
Assuming the 90 days horizon Superior Plus Corp is expected to generate 0.62 times more return on investment than GENTING SG. However, Superior Plus Corp is 1.61 times less risky than GENTING SG. It trades about 0.12 of its potential returns per unit of risk. GENTING SG LTD is currently generating about -0.13 per unit of risk. If you would invest 413.00 in Superior Plus Corp on October 25, 2024 and sell it today you would earn a total of 15.00 from holding Superior Plus Corp or generate 3.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. GENTING SG LTD
Performance |
| Timeline |
| Superior Plus Corp |
| GENTING SG LTD |
Superior Plus and GENTING SG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and GENTING SG
The main advantage of trading using opposite Superior Plus and GENTING SG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, GENTING SG 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 GENTING SG will offset losses from the drop in GENTING SG's long position.| Superior Plus vs. CITY OFFICE REIT | Superior Plus vs. Infrastrutture Wireless Italiane | Superior Plus vs. Fuji Media Holdings | Superior Plus vs. Live Nation Entertainment |
| GENTING SG vs. Medical Properties Trust | GENTING SG vs. ULTRA CLEAN HLDGS | GENTING SG vs. MEDICAL FACILITIES NEW | GENTING SG vs. MAGNUM MINING EXP |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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