Correlation Between Superior Plus and Société Générale
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Société Générale 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 Société Générale 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 Socit Gnrale Socit, you can compare the effects of market volatilities on Superior Plus and Société Générale 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 Société Générale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Société Générale.
Diversification Opportunities for Superior Plus and Société Générale
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Superior and Société is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Socit Gnrale Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit Gnrale Socit 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 Société Générale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit Gnrale Socit has no effect on the direction of Superior Plus i.e., Superior Plus and Société Générale go up and down completely randomly.
Pair Corralation between Superior Plus and Société Générale
Assuming the 90 days horizon Superior Plus Corp is expected to generate 3.41 times more return on investment than Société Générale. However, Superior Plus is 3.41 times more volatile than Socit Gnrale Socit. It trades about 0.02 of its potential returns per unit of risk. Socit Gnrale Socit is currently generating about -0.25 per unit of risk. If you would invest 428.00 in Superior Plus Corp on September 3, 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 Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Socit Gnrale Socit
Performance |
| Timeline |
| Superior Plus Corp |
| Socit Gnrale Socit |
Superior Plus and Société Générale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Société Générale
The main advantage of trading using opposite Superior Plus and Société Générale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Société Générale 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 Société Générale will offset losses from the drop in Société Générale's long position.| Superior Plus vs. Collins Foods Limited | Superior Plus vs. Thai Beverage Public | Superior Plus vs. ADRIATIC METALS LS 013355 | Superior Plus vs. Lifeway Foods |
| Société Générale vs. Superior Plus Corp | Société Générale vs. NMI Holdings | Société Générale vs. Origin Agritech | Société Générale vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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