Correlation Between Superior Plus and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Templeton Global 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 Templeton Global 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 Templeton Global Bond, you can compare the effects of market volatilities on Superior Plus and Templeton Global 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 Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Templeton Global.
Diversification Opportunities for Superior Plus and Templeton Global
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Superior and Templeton is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Templeton Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Bond 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 Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Bond has no effect on the direction of Superior Plus i.e., Superior Plus and Templeton Global go up and down completely randomly.
Pair Corralation between Superior Plus and Templeton Global
Assuming the 90 days horizon Superior Plus Corp is expected to generate 3.22 times more return on investment than Templeton Global. However, Superior Plus is 3.22 times more volatile than Templeton Global Bond. It trades about 0.11 of its potential returns per unit of risk. Templeton Global Bond is currently generating about 0.02 per unit of risk. If you would invest 404.00 in Superior Plus Corp on October 20, 2024 and sell it today you would earn a total of 14.00 from holding Superior Plus Corp or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Templeton Global Bond
Performance |
| Timeline |
| Superior Plus Corp |
| Templeton Global Bond |
Superior Plus and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Templeton Global
The main advantage of trading using opposite Superior Plus and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Templeton Global 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 Templeton Global will offset losses from the drop in Templeton Global's long position.| Superior Plus vs. H2O Retailing | Superior Plus vs. Caseys General Stores | Superior Plus vs. MEDCAW INVESTMENTS LS 01 | Superior Plus vs. FAST RETAIL ADR |
| Templeton Global vs. Groupama Entreprises N | Templeton Global vs. Renaissance Europe C | Templeton Global vs. Superior Plus Corp | Templeton Global vs. Intel |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |