Correlation Between Superior Plus and Regions Financial
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Regions Financial 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 Regions Financial 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 Regions Financial, you can compare the effects of market volatilities on Superior Plus and Regions Financial 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 Regions Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Regions Financial.
Diversification Opportunities for Superior Plus and Regions Financial
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Superior and Regions is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Regions Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regions Financial 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 Regions Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regions Financial has no effect on the direction of Superior Plus i.e., Superior Plus and Regions Financial go up and down completely randomly.
Pair Corralation between Superior Plus and Regions Financial
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Regions Financial. In addition to that, Superior Plus is 1.52 times more volatile than Regions Financial. It trades about -0.08 of its total potential returns per unit of risk. Regions Financial is currently generating about 0.2 per unit of volatility. If you would invest 1,657 in Regions Financial on August 28, 2024 and sell it today you would earn a total of 943.00 from holding Regions Financial or generate 56.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Superior Plus Corp vs. Regions Financial
Performance |
| Timeline |
| Superior Plus Corp |
| Regions Financial |
Superior Plus and Regions Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Regions Financial
The main advantage of trading using opposite Superior Plus and Regions Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Regions Financial 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 Regions Financial will offset losses from the drop in Regions Financial's long position.| Superior Plus vs. Canon Marketing Japan | Superior Plus vs. CANON MARKETING JP | Superior Plus vs. KRISPY KREME DL 01 | Superior Plus vs. SIDETRADE EO 1 |
| Regions Financial vs. Mitsui Chemicals | Regions Financial vs. SIDETRADE EO 1 | Regions Financial vs. Globe Trade Centre | Regions Financial vs. Vastned Retail NV |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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