Correlation Between Superior Plus and Carmat SA
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Carmat SA 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 Carmat SA 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 Carmat SA, you can compare the effects of market volatilities on Superior Plus and Carmat SA 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 Carmat SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Carmat SA.
Diversification Opportunities for Superior Plus and Carmat SA
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Superior and Carmat is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Carmat SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carmat SA 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 Carmat SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carmat SA has no effect on the direction of Superior Plus i.e., Superior Plus and Carmat SA go up and down completely randomly.
Pair Corralation between Superior Plus and Carmat SA
Assuming the 90 days horizon Superior Plus Corp is expected to generate 0.29 times more return on investment than Carmat SA. However, Superior Plus Corp is 3.4 times less risky than Carmat SA. It trades about -0.03 of its potential returns per unit of risk. Carmat SA is currently generating about -0.05 per unit of risk. If you would invest 558.00 in Superior Plus Corp on August 28, 2024 and sell it today you would lose (148.00) from holding Superior Plus Corp or give up 26.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Carmat SA
Performance |
| Timeline |
| Superior Plus Corp |
| Carmat SA |
Superior Plus and Carmat SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Carmat SA
The main advantage of trading using opposite Superior Plus and Carmat SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Carmat SA 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 Carmat SA will offset losses from the drop in Carmat SA's long position.| Superior Plus vs. Canon Marketing Japan | Superior Plus vs. CANON MARKETING JP | Superior Plus vs. KRISPY KREME DL 01 | Superior Plus vs. SIDETRADE EO 1 |
| Carmat SA vs. Intuitive Surgical | Carmat SA vs. Superior Plus Corp | Carmat SA vs. NMI Holdings | Carmat SA 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stocks Directory Find actively traded stocks across global markets |