Correlation Between Superior Plus and SENKO GROUP
Can any of the company-specific risk be diversified away by investing in both Superior Plus and SENKO GROUP 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 SENKO GROUP 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 SENKO GROUP HOLDINGS, you can compare the effects of market volatilities on Superior Plus and SENKO GROUP 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 SENKO GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and SENKO GROUP.
Diversification Opportunities for Superior Plus and SENKO GROUP
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and SENKO is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and SENKO GROUP HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENKO GROUP HOLDINGS 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 SENKO GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENKO GROUP HOLDINGS has no effect on the direction of Superior Plus i.e., Superior Plus and SENKO GROUP go up and down completely randomly.
Pair Corralation between Superior Plus and SENKO GROUP
Assuming the 90 days horizon Superior Plus Corp is expected to generate 1.27 times more return on investment than SENKO GROUP. However, Superior Plus is 1.27 times more volatile than SENKO GROUP HOLDINGS. It trades about 0.11 of its potential returns per unit of risk. SENKO GROUP HOLDINGS is currently generating about -0.22 per unit of risk. If you would invest 404.00 in Superior Plus Corp on October 20, 2024 and sell it today you would earn a total of 14.00 from holding Superior Plus Corp or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. SENKO GROUP HOLDINGS
Performance |
| Timeline |
| Superior Plus Corp |
| SENKO GROUP HOLDINGS |
Superior Plus and SENKO GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and SENKO GROUP
The main advantage of trading using opposite Superior Plus and SENKO GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, SENKO GROUP 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 SENKO GROUP will offset losses from the drop in SENKO GROUP's long position.| Superior Plus vs. H2O Retailing | Superior Plus vs. Caseys General Stores | Superior Plus vs. MEDCAW INVESTMENTS LS 01 | Superior Plus vs. FAST RETAIL ADR |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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