Correlation Between Superior Plus and CN YANGTPWR
Can any of the company-specific risk be diversified away by investing in both Superior Plus and CN YANGTPWR 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 CN YANGTPWR 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 CN YANGTPWR GDR, you can compare the effects of market volatilities on Superior Plus and CN YANGTPWR 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 CN YANGTPWR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and CN YANGTPWR.
Diversification Opportunities for Superior Plus and CN YANGTPWR
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Superior and CYZB is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and CN YANGTPWR GDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN YANGTPWR GDR 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 CN YANGTPWR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN YANGTPWR GDR has no effect on the direction of Superior Plus i.e., Superior Plus and CN YANGTPWR go up and down completely randomly.
Pair Corralation between Superior Plus and CN YANGTPWR
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the CN YANGTPWR. But the stock apears to be less risky and, when comparing its historical volatility, Superior Plus Corp is 1.03 times less risky than CN YANGTPWR. The stock trades about -0.02 of its potential returns per unit of risk. The CN YANGTPWR GDR is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,590 in CN YANGTPWR GDR on September 1, 2024 and sell it today you would earn a total of 730.00 from holding CN YANGTPWR GDR or generate 28.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Superior Plus Corp vs. CN YANGTPWR GDR
Performance |
| Timeline |
| Superior Plus Corp |
| CN YANGTPWR GDR |
Superior Plus and CN YANGTPWR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and CN YANGTPWR
The main advantage of trading using opposite Superior Plus and CN YANGTPWR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, CN YANGTPWR 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 CN YANGTPWR will offset losses from the drop in CN YANGTPWR's long position.| Superior Plus vs. TSOGO SUN GAMING | Superior Plus vs. FUTURE GAMING GRP | Superior Plus vs. TROPHY GAMES DEV | Superior Plus vs. Boyd Gaming |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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