Correlation Between Superior Plus and AAC TECHNOLOGHLDGADR
Can any of the company-specific risk be diversified away by investing in both Superior Plus and AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR, you can compare the effects of market volatilities on Superior Plus and AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and AAC TECHNOLOGHLDGADR.
Diversification Opportunities for Superior Plus and AAC TECHNOLOGHLDGADR
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and AAC is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and AAC TECHNOLOGHLDGADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC TECHNOLOGHLDGADR has no effect on the direction of Superior Plus i.e., Superior Plus and AAC TECHNOLOGHLDGADR go up and down completely randomly.
Pair Corralation between Superior Plus and AAC TECHNOLOGHLDGADR
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the AAC TECHNOLOGHLDGADR. In addition to that, Superior Plus is 1.46 times more volatile than AAC TECHNOLOGHLDGADR. It trades about -0.04 of its total potential returns per unit of risk. AAC TECHNOLOGHLDGADR is currently generating about 0.2 per unit of volatility. If you would invest 352.00 in AAC TECHNOLOGHLDGADR on August 26, 2024 and sell it today you would earn a total of 52.00 from holding AAC TECHNOLOGHLDGADR or generate 14.77% 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. AAC TECHNOLOGHLDGADR
Performance |
| Timeline |
| Superior Plus Corp |
| AAC TECHNOLOGHLDGADR |
Superior Plus and AAC TECHNOLOGHLDGADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and AAC TECHNOLOGHLDGADR
The main advantage of trading using opposite Superior Plus and AAC TECHNOLOGHLDGADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR will offset losses from the drop in AAC TECHNOLOGHLDGADR's long position.| Superior Plus vs. LION ONE METALS | Superior Plus vs. Zijin Mining Group | Superior Plus vs. SBI Insurance Group | Superior Plus vs. HANOVER INSURANCE |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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