Correlation Between Superior Plus and New York
Can any of the company-specific risk be diversified away by investing in both Superior Plus and New York 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 New York 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 The New York, you can compare the effects of market volatilities on Superior Plus and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and New York.
Diversification Opportunities for Superior Plus and New York
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Superior and New is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and The New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York has no effect on the direction of Superior Plus i.e., Superior Plus and New York go up and down completely randomly.
Pair Corralation between Superior Plus and New York
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the New York. In addition to that, Superior Plus is 2.02 times more volatile than The New York. It trades about -0.01 of its total potential returns per unit of risk. The New York is currently generating about 0.05 per unit of volatility. If you would invest 5,120 in The New York on August 29, 2024 and sell it today you would earn a total of 106.00 from holding The New York or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Superior Plus Corp vs. The New York
Performance |
| Timeline |
| Superior Plus Corp |
| New York |
Superior Plus and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and New York
The main advantage of trading using opposite Superior Plus and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, New York 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 New York will offset losses from the drop in New York'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 |
| New York vs. MAGNUM MINING EXP | New York vs. SBM OFFSHORE | New York vs. MCEWEN MINING INC | New York vs. RYU Apparel |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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