Correlation Between Superior Plus and Marubeni
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Marubeni 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 Marubeni 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 Marubeni, you can compare the effects of market volatilities on Superior Plus and Marubeni 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 Marubeni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Marubeni.
Diversification Opportunities for Superior Plus and Marubeni
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Superior and Marubeni is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Marubeni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marubeni 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 Marubeni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marubeni has no effect on the direction of Superior Plus i.e., Superior Plus and Marubeni go up and down completely randomly.
Pair Corralation between Superior Plus and Marubeni
Assuming the 90 days horizon Superior Plus Corp is expected to generate 2.76 times more return on investment than Marubeni. However, Superior Plus is 2.76 times more volatile than Marubeni. It trades about 0.02 of its potential returns per unit of risk. Marubeni is currently generating about 0.06 per unit of risk. If you would invest 426.00 in Superior Plus Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Superior Plus Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Superior Plus Corp vs. Marubeni
Performance |
| Timeline |
| Superior Plus Corp |
| Marubeni |
Superior Plus and Marubeni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Marubeni
The main advantage of trading using opposite Superior Plus and Marubeni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Marubeni 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 Marubeni will offset losses from the drop in Marubeni'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 |
| Marubeni vs. New Residential Investment | Marubeni vs. TROPHY GAMES DEV | Marubeni vs. OURGAME INTHOLDL 00005 | Marubeni vs. WisdomTree Investments |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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