Correlation Between Superior Plus and Aurubis AG
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Aurubis AG 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 Aurubis AG 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 Aurubis AG, you can compare the effects of market volatilities on Superior Plus and Aurubis AG 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 Aurubis AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Aurubis AG.
Diversification Opportunities for Superior Plus and Aurubis AG
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Superior and Aurubis is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Aurubis AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurubis AG 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 Aurubis AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurubis AG has no effect on the direction of Superior Plus i.e., Superior Plus and Aurubis AG go up and down completely randomly.
Pair Corralation between Superior Plus and Aurubis AG
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Aurubis AG. In addition to that, Superior Plus is 1.34 times more volatile than Aurubis AG. It trades about -0.02 of its total potential returns per unit of risk. Aurubis AG is currently generating about 0.24 per unit of volatility. If you would invest 6,355 in Aurubis AG on September 13, 2024 and sell it today you would earn a total of 2,135 from holding Aurubis AG or generate 33.6% 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. Aurubis AG
Performance |
| Timeline |
| Superior Plus Corp |
| Aurubis AG |
Superior Plus and Aurubis AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Aurubis AG
The main advantage of trading using opposite Superior Plus and Aurubis AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Aurubis AG 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 Aurubis AG will offset losses from the drop in Aurubis AG's long position.| Superior Plus vs. HF SINCLAIR P | Superior Plus vs. PT Indofood Sukses | Superior Plus vs. SENECA FOODS A | Superior Plus vs. ScanSource |
| Aurubis AG vs. Southern Copper | Aurubis AG vs. Sandfire Resources Limited | Aurubis AG vs. Superior Plus Corp | Aurubis AG vs. NMI Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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