Correlation Between Superior Plus and Lamar Advertising
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Lamar Advertising 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 Lamar Advertising 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 Lamar Advertising, you can compare the effects of market volatilities on Superior Plus and Lamar Advertising 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 Lamar Advertising. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Lamar Advertising.
Diversification Opportunities for Superior Plus and Lamar Advertising
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and Lamar is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Lamar Advertising in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lamar Advertising 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 Lamar Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lamar Advertising has no effect on the direction of Superior Plus i.e., Superior Plus and Lamar Advertising go up and down completely randomly.
Pair Corralation between Superior Plus and Lamar Advertising
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Lamar Advertising. In addition to that, Superior Plus is 2.22 times more volatile than Lamar Advertising. It trades about -0.07 of its total potential returns per unit of risk. Lamar Advertising is currently generating about 0.11 per unit of volatility. If you would invest 10,636 in Lamar Advertising on September 1, 2024 and sell it today you would earn a total of 1,964 from holding Lamar Advertising or generate 18.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Superior Plus Corp vs. Lamar Advertising
Performance |
| Timeline |
| Superior Plus Corp |
| Lamar Advertising |
Superior Plus and Lamar Advertising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Lamar Advertising
The main advantage of trading using opposite Superior Plus and Lamar Advertising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Lamar Advertising 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 Lamar Advertising will offset losses from the drop in Lamar Advertising'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 |
| Lamar Advertising vs. Superior Plus Corp | Lamar Advertising vs. NMI Holdings | Lamar Advertising vs. Origin Agritech | Lamar Advertising vs. SIVERS SEMICONDUCTORS AB |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |