Correlation Between Superior Plus and GuocoLand
Can any of the company-specific risk be diversified away by investing in both Superior Plus and GuocoLand 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 GuocoLand 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 GuocoLand Limited, you can compare the effects of market volatilities on Superior Plus and GuocoLand 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 GuocoLand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and GuocoLand.
Diversification Opportunities for Superior Plus and GuocoLand
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Superior and GuocoLand is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and GuocoLand Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GuocoLand Limited 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 GuocoLand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GuocoLand Limited has no effect on the direction of Superior Plus i.e., Superior Plus and GuocoLand go up and down completely randomly.
Pair Corralation between Superior Plus and GuocoLand
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the GuocoLand. In addition to that, Superior Plus is 5.53 times more volatile than GuocoLand Limited. It trades about -0.05 of its total potential returns per unit of risk. GuocoLand Limited is currently generating about 0.1 per unit of volatility. If you would invest 96.00 in GuocoLand Limited on August 29, 2024 and sell it today you would earn a total of 10.00 from holding GuocoLand Limited or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. GuocoLand Limited
Performance |
| Timeline |
| Superior Plus Corp |
| GuocoLand Limited |
Superior Plus and GuocoLand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and GuocoLand
The main advantage of trading using opposite Superior Plus and GuocoLand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, GuocoLand 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 GuocoLand will offset losses from the drop in GuocoLand's long position.| Superior Plus vs. Meli Hotels International | Superior Plus vs. InterContinental Hotels Group | Superior Plus vs. PT Bank Maybank | Superior Plus vs. Pebblebrook Hotel Trust |
| GuocoLand vs. Microbot Medical | GuocoLand vs. BURLINGTON STORES | GuocoLand vs. JIAHUA STORES | GuocoLand vs. ONWARD MEDICAL BV |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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