Correlation Between Superior Plus and Strer SE
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Strer SE 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 Strer SE 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 Strer SE Co, you can compare the effects of market volatilities on Superior Plus and Strer SE 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 Strer SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Strer SE.
Diversification Opportunities for Superior Plus and Strer SE
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Superior and Strer is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Strer SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strer SE 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 Strer SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strer SE has no effect on the direction of Superior Plus i.e., Superior Plus and Strer SE go up and down completely randomly.
Pair Corralation between Superior Plus and Strer SE
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Strer SE. In addition to that, Superior Plus is 1.6 times more volatile than Strer SE Co. It trades about -0.05 of its total potential returns per unit of risk. Strer SE Co is currently generating about -0.01 per unit of volatility. If you would invest 5,013 in Strer SE Co on September 21, 2024 and sell it today you would lose (287.00) from holding Strer SE Co or give up 5.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Strer SE Co
Performance |
| Timeline |
| Superior Plus Corp |
| Strer SE |
Superior Plus and Strer SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Strer SE
The main advantage of trading using opposite Superior Plus and Strer SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Strer SE 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 Strer SE will offset losses from the drop in Strer SE's long position.| Superior Plus vs. SBA Communications Corp | Superior Plus vs. Singapore Telecommunications Limited | Superior Plus vs. Ribbon Communications | Superior Plus vs. ABO GROUP ENVIRONMENT |
| Strer SE vs. Superior Plus Corp | Strer SE vs. SIVERS SEMICONDUCTORS AB | Strer SE vs. NorAm Drilling AS | Strer SE vs. Norsk Hydro ASA |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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