Correlation Between Superior Plus and Postal Savings
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Postal Savings 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 Postal Savings 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 Postal Savings Bank, you can compare the effects of market volatilities on Superior Plus and Postal Savings 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 Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Postal Savings.
Diversification Opportunities for Superior Plus and Postal Savings
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and Postal is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank 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 Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of Superior Plus i.e., Superior Plus and Postal Savings go up and down completely randomly.
Pair Corralation between Superior Plus and Postal Savings
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Postal Savings. In addition to that, Superior Plus is 2.68 times more volatile than Postal Savings Bank. It trades about -0.01 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about 0.01 per unit of volatility. If you would invest 54.00 in Postal Savings Bank on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Postal Savings Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Postal Savings Bank
Performance |
| Timeline |
| Superior Plus Corp |
| Postal Savings Bank |
Superior Plus and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Postal Savings
The main advantage of trading using opposite Superior Plus and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' long position.| Superior Plus vs. Canon Marketing Japan | Superior Plus vs. CANON MARKETING JP | Superior Plus vs. KRISPY KREME DL 01 | Superior Plus vs. SIDETRADE EO 1 |
| Postal Savings vs. Deutsche Bank Aktiengesellschaft | Postal Savings vs. Superior Plus Corp | Postal Savings vs. NMI Holdings | Postal Savings 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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