Correlation Between Superior Plus and Sunrun
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Sunrun 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 Sunrun 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 Sunrun Inc, you can compare the effects of market volatilities on Superior Plus and Sunrun 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 Sunrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Sunrun.
Diversification Opportunities for Superior Plus and Sunrun
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Superior and Sunrun is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Sunrun Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunrun Inc 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 Sunrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunrun Inc has no effect on the direction of Superior Plus i.e., Superior Plus and Sunrun go up and down completely randomly.
Pair Corralation between Superior Plus and Sunrun
Assuming the 90 days horizon Superior Plus Corp is expected to generate 0.39 times more return on investment than Sunrun. However, Superior Plus Corp is 2.58 times less risky than Sunrun. It trades about -0.02 of its potential returns per unit of risk. Sunrun Inc is currently generating about -0.01 per unit of risk. If you would invest 565.00 in Superior Plus Corp on September 2, 2024 and sell it today you would lose (137.00) from holding Superior Plus Corp or give up 24.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Sunrun Inc
Performance |
| Timeline |
| Superior Plus Corp |
| Sunrun Inc |
Superior Plus and Sunrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Sunrun
The main advantage of trading using opposite Superior Plus and Sunrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Sunrun 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 Sunrun will offset losses from the drop in Sunrun's long position.| Superior Plus vs. TEXAS ROADHOUSE | Superior Plus vs. Broadcom | Superior Plus vs. Fukuyama Transporting Co | Superior Plus vs. Wayside Technology Group |
| Sunrun vs. Xinyi Solar Holdings | Sunrun vs. Superior Plus Corp | Sunrun vs. NMI Holdings | Sunrun vs. Origin Agritech |
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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