Correlation Between Superior Plus and Peel Mining
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Peel Mining 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 Peel Mining 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 Peel Mining Limited, you can compare the effects of market volatilities on Superior Plus and Peel Mining 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 Peel Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Peel Mining.
Diversification Opportunities for Superior Plus and Peel Mining
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Superior and Peel is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Peel Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peel Mining Limited 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 Peel Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peel Mining Limited has no effect on the direction of Superior Plus i.e., Superior Plus and Peel Mining go up and down completely randomly.
Pair Corralation between Superior Plus and Peel Mining
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Peel Mining. But the stock apears to be less risky and, when comparing its historical volatility, Superior Plus Corp is 3.48 times less risky than Peel Mining. The stock trades about -0.02 of its potential returns per unit of risk. The Peel Mining Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9.05 in Peel Mining Limited on September 14, 2024 and sell it today you would lose (2.00) from holding Peel Mining Limited or give up 22.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Peel Mining Limited
Performance |
| Timeline |
| Superior Plus Corp |
| Peel Mining Limited |
Superior Plus and Peel Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Peel Mining
The main advantage of trading using opposite Superior Plus and Peel Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Peel Mining 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 Peel Mining will offset losses from the drop in Peel Mining's long position.| Superior Plus vs. Boiron SA | Superior Plus vs. COSMOSTEEL HLDGS | Superior Plus vs. Vastned Retail NV | Superior Plus vs. BURLINGTON STORES |
| Peel Mining vs. PennantPark Investment | Peel Mining vs. Sixt Leasing SE | Peel Mining vs. Lendlease Group | Peel Mining vs. PennyMac Mortgage Investment |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |