Correlation Between Superior Plus and Sinopec Shanghai
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Sinopec Shanghai 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 Sinopec Shanghai 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 Sinopec Shanghai Petrochemical, you can compare the effects of market volatilities on Superior Plus and Sinopec Shanghai 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 Sinopec Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Sinopec Shanghai.
Diversification Opportunities for Superior Plus and Sinopec Shanghai
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and Sinopec is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Sinopec Shanghai Petrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinopec Shanghai Pet 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 Sinopec Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinopec Shanghai Pet has no effect on the direction of Superior Plus i.e., Superior Plus and Sinopec Shanghai go up and down completely randomly.
Pair Corralation between Superior Plus and Sinopec Shanghai
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Sinopec Shanghai. But the stock apears to be less risky and, when comparing its historical volatility, Superior Plus Corp is 2.04 times less risky than Sinopec Shanghai. The stock trades about -0.06 of its potential returns per unit of risk. The Sinopec Shanghai Petrochemical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Sinopec Shanghai Petrochemical on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Sinopec Shanghai Petrochemical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Sinopec Shanghai Petrochemical
Performance |
| Timeline |
| Superior Plus Corp |
| Sinopec Shanghai Pet |
Superior Plus and Sinopec Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Sinopec Shanghai
The main advantage of trading using opposite Superior Plus and Sinopec Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Sinopec Shanghai 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 Sinopec Shanghai will offset losses from the drop in Sinopec Shanghai's long position.| Superior Plus vs. United Breweries Co | Superior Plus vs. National Beverage Corp | Superior Plus vs. China Resources Beer | Superior Plus vs. SAN MIGUEL BREWERY |
| Sinopec Shanghai vs. TRADEDOUBLER AB SK | Sinopec Shanghai vs. MONEYSUPERMARKET | Sinopec Shanghai vs. PATTIES FOODS | Sinopec Shanghai vs. CANON MARKETING JP |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |