Correlation Between Superior Plus and HOYA
Can any of the company-specific risk be diversified away by investing in both Superior Plus and HOYA 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 HOYA 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 HOYA Corporation, you can compare the effects of market volatilities on Superior Plus and HOYA 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 HOYA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and HOYA.
Diversification Opportunities for Superior Plus and HOYA
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Superior and HOYA is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and HOYA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOYA 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 HOYA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOYA has no effect on the direction of Superior Plus i.e., Superior Plus and HOYA go up and down completely randomly.
Pair Corralation between Superior Plus and HOYA
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the HOYA. But the stock apears to be less risky and, when comparing its historical volatility, Superior Plus Corp is 2.0 times less risky than HOYA. The stock trades about -0.05 of its potential returns per unit of risk. The HOYA Corporation is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 8,274 in HOYA Corporation on August 29, 2024 and sell it today you would earn a total of 3,796 from holding HOYA Corporation or generate 45.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Superior Plus Corp vs. HOYA Corp.
Performance |
| Timeline |
| Superior Plus Corp |
| HOYA |
Superior Plus and HOYA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and HOYA
The main advantage of trading using opposite Superior Plus and HOYA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, HOYA 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 HOYA will offset losses from the drop in HOYA'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 |
| HOYA vs. Becton Dickinson and | HOYA vs. Superior Plus Corp | HOYA vs. NMI Holdings | HOYA 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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