Correlation Between Superior Plus and Kemper
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Kemper 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 Kemper 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 Kemper, you can compare the effects of market volatilities on Superior Plus and Kemper 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 Kemper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Kemper.
Diversification Opportunities for Superior Plus and Kemper
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Superior and Kemper is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Kemper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kemper 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 Kemper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kemper has no effect on the direction of Superior Plus i.e., Superior Plus and Kemper go up and down completely randomly.
Pair Corralation between Superior Plus and Kemper
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Kemper. In addition to that, Superior Plus is 1.12 times more volatile than Kemper. It trades about -0.05 of its total potential returns per unit of risk. Kemper is currently generating about 0.1 per unit of volatility. If you would invest 3,863 in Kemper on September 4, 2024 and sell it today you would earn a total of 2,787 from holding Kemper or generate 72.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Superior Plus Corp vs. Kemper
Performance |
| Timeline |
| Superior Plus Corp |
| Kemper |
Superior Plus and Kemper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Kemper
The main advantage of trading using opposite Superior Plus and Kemper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Kemper 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 Kemper will offset losses from the drop in Kemper's long position.| Superior Plus vs. Food Life Companies | Superior Plus vs. Mitsubishi Materials | Superior Plus vs. United Natural Foods | Superior Plus vs. NEWELL RUBBERMAID |
| Kemper vs. WESTLAKE CHEMICAL | Kemper vs. NISSAN CHEMICAL IND | Kemper vs. HOCHSCHILD MINING | Kemper vs. Hochschild Mining plc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |