Correlation Between Superior Plus and AEON MALL
Can any of the company-specific risk be diversified away by investing in both Superior Plus and AEON MALL 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 AEON MALL 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 AEON MALL LTD, you can compare the effects of market volatilities on Superior Plus and AEON MALL 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 AEON MALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and AEON MALL.
Diversification Opportunities for Superior Plus and AEON MALL
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Superior and AEON is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and AEON MALL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON MALL 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 AEON MALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON MALL LTD has no effect on the direction of Superior Plus i.e., Superior Plus and AEON MALL go up and down completely randomly.
Pair Corralation between Superior Plus and AEON MALL
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the AEON MALL. In addition to that, Superior Plus is 1.55 times more volatile than AEON MALL LTD. It trades about -0.09 of its total potential returns per unit of risk. AEON MALL LTD is currently generating about 0.07 per unit of volatility. If you would invest 1,070 in AEON MALL LTD on August 25, 2024 and sell it today you would earn a total of 150.00 from holding AEON MALL LTD or generate 14.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.24% |
| Values | Daily Returns |
Superior Plus Corp vs. AEON MALL LTD
Performance |
| Timeline |
| Superior Plus Corp |
| AEON MALL LTD |
Superior Plus and AEON MALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and AEON MALL
The main advantage of trading using opposite Superior Plus and AEON MALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, AEON MALL 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 AEON MALL will offset losses from the drop in AEON MALL's long position.| Superior Plus vs. Fast Retailing Co | Superior Plus vs. Auto Trader Group | Superior Plus vs. Monster Beverage Corp | Superior Plus vs. Suntory Beverage Food |
| AEON MALL vs. Dis Fastigheter AB | AEON MALL vs. Superior Plus Corp | AEON MALL vs. NMI Holdings | AEON MALL 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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