Correlation Between Superior Plus and Byggmax Group
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Byggmax 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 Byggmax 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 Byggmax Group AB, you can compare the effects of market volatilities on Superior Plus and Byggmax 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 Byggmax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Byggmax Group.
Diversification Opportunities for Superior Plus and Byggmax Group
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and Byggmax is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Byggmax Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byggmax Group AB 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 Byggmax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byggmax Group AB has no effect on the direction of Superior Plus i.e., Superior Plus and Byggmax Group go up and down completely randomly.
Pair Corralation between Superior Plus and Byggmax Group
Assuming the 90 days horizon Superior Plus Corp is expected to generate 1.85 times more return on investment than Byggmax Group. However, Superior Plus is 1.85 times more volatile than Byggmax Group AB. It trades about 0.02 of its potential returns per unit of risk. Byggmax Group AB is currently generating about -0.12 per unit of risk. If you would invest 428.00 in Superior Plus Corp on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Superior Plus Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Byggmax Group AB
Performance |
| Timeline |
| Superior Plus Corp |
| Byggmax Group AB |
Superior Plus and Byggmax Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Byggmax Group
The main advantage of trading using opposite Superior Plus and Byggmax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Byggmax 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 Byggmax Group will offset losses from the drop in Byggmax Group's long position.| Superior Plus vs. Collins Foods Limited | Superior Plus vs. Thai Beverage Public | Superior Plus vs. ADRIATIC METALS LS 013355 | Superior Plus vs. Lifeway Foods |
| Byggmax Group vs. Lowes Companies | Byggmax Group vs. Haverty Furniture Companies | Byggmax Group vs. Superior Plus Corp | Byggmax Group vs. NMI Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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