Correlation Between Superior Plus and Commerzbank
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Commerzbank 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 Commerzbank 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 Commerzbank AG, you can compare the effects of market volatilities on Superior Plus and Commerzbank 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 Commerzbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Commerzbank.
Diversification Opportunities for Superior Plus and Commerzbank
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Superior and Commerzbank is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Commerzbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commerzbank AG 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 Commerzbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commerzbank AG has no effect on the direction of Superior Plus i.e., Superior Plus and Commerzbank go up and down completely randomly.
Pair Corralation between Superior Plus and Commerzbank
Assuming the 90 days horizon Superior Plus Corp is expected to generate 2.97 times more return on investment than Commerzbank. However, Superior Plus is 2.97 times more volatile than Commerzbank AG. It trades about 0.02 of its potential returns per unit of risk. Commerzbank AG is currently generating about -0.31 per unit of risk. If you would invest 428.00 in Superior Plus Corp on September 4, 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 | 95.45% |
| Values | Daily Returns |
Superior Plus Corp vs. Commerzbank AG
Performance |
| Timeline |
| Superior Plus Corp |
| Commerzbank AG |
Superior Plus and Commerzbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Commerzbank
The main advantage of trading using opposite Superior Plus and Commerzbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Commerzbank 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 Commerzbank will offset losses from the drop in Commerzbank's long position.| Superior Plus vs. Food Life Companies | Superior Plus vs. Mitsubishi Materials | Superior Plus vs. United Natural Foods | Superior Plus vs. NEWELL RUBBERMAID |
| Commerzbank vs. Superior Plus Corp | Commerzbank vs. NMI Holdings | Commerzbank vs. Origin Agritech | Commerzbank vs. SIVERS SEMICONDUCTORS AB |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |