Correlation Between Superior Plus and Impala Platinum
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Impala Platinum 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 Impala Platinum 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 Impala Platinum Holdings, you can compare the effects of market volatilities on Superior Plus and Impala Platinum 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 Impala Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Impala Platinum.
Diversification Opportunities for Superior Plus and Impala Platinum
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and Impala is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Impala Platinum Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impala Platinum Holdings 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 Impala Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impala Platinum Holdings has no effect on the direction of Superior Plus i.e., Superior Plus and Impala Platinum go up and down completely randomly.
Pair Corralation between Superior Plus and Impala Platinum
Assuming the 90 days horizon Superior Plus Corp is expected to generate 0.71 times more return on investment than Impala Platinum. However, Superior Plus Corp is 1.4 times less risky than Impala Platinum. It trades about 0.19 of its potential returns per unit of risk. Impala Platinum Holdings is currently generating about -0.01 per unit of risk. If you would invest 410.00 in Superior Plus Corp on September 15, 2024 and sell it today you would earn a total of 34.00 from holding Superior Plus Corp or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Superior Plus Corp vs. Impala Platinum Holdings
Performance |
| Timeline |
| Superior Plus Corp |
| Impala Platinum Holdings |
Superior Plus and Impala Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Impala Platinum
The main advantage of trading using opposite Superior Plus and Impala Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Impala Platinum 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 Impala Platinum will offset losses from the drop in Impala Platinum's long position.| Superior Plus vs. Nissan Chemical Corp | Superior Plus vs. Japan Medical Dynamic | Superior Plus vs. Sanyo Chemical Industries | Superior Plus vs. MeVis Medical Solutions |
| Impala Platinum vs. HYATT HOTELS A | Impala Platinum vs. OURGAME INTHOLDL 00005 | Impala Platinum vs. Choice Hotels International | Impala Platinum vs. Hochschild Mining plc |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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