Correlation Between Superior Plus and APPLIED MATERIALS
Can any of the company-specific risk be diversified away by investing in both Superior Plus and APPLIED MATERIALS 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 APPLIED MATERIALS 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 APPLIED MATERIALS, you can compare the effects of market volatilities on Superior Plus and APPLIED MATERIALS 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 APPLIED MATERIALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and APPLIED MATERIALS.
Diversification Opportunities for Superior Plus and APPLIED MATERIALS
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Superior and APPLIED is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and APPLIED MATERIALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLIED MATERIALS 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 APPLIED MATERIALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLIED MATERIALS has no effect on the direction of Superior Plus i.e., Superior Plus and APPLIED MATERIALS go up and down completely randomly.
Pair Corralation between Superior Plus and APPLIED MATERIALS
Assuming the 90 days horizon Superior Plus Corp is expected to generate 1.87 times more return on investment than APPLIED MATERIALS. However, Superior Plus is 1.87 times more volatile than APPLIED MATERIALS. It trades about 0.03 of its potential returns per unit of risk. APPLIED MATERIALS is currently generating about -0.02 per unit of risk. If you would invest 424.00 in Superior Plus Corp on September 2, 2024 and sell it today you would earn a total of 4.00 from holding Superior Plus Corp or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. APPLIED MATERIALS
Performance |
| Timeline |
| Superior Plus Corp |
| APPLIED MATERIALS |
Superior Plus and APPLIED MATERIALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and APPLIED MATERIALS
The main advantage of trading using opposite Superior Plus and APPLIED MATERIALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, APPLIED MATERIALS 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 APPLIED MATERIALS will offset losses from the drop in APPLIED MATERIALS's long position.| Superior Plus vs. TEXAS ROADHOUSE | Superior Plus vs. Broadcom | Superior Plus vs. Fukuyama Transporting Co | Superior Plus vs. Wayside Technology Group |
| APPLIED MATERIALS vs. SBM OFFSHORE | APPLIED MATERIALS vs. Wizz Air Holdings | APPLIED MATERIALS vs. Selective Insurance Group | APPLIED MATERIALS vs. Japan Post Insurance |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stocks Directory Find actively traded stocks across global markets |