Correlation Between Superior Plus and Wabash National
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Wabash National 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 Wabash National 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 Wabash National, you can compare the effects of market volatilities on Superior Plus and Wabash National 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 Wabash National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Wabash National.
Diversification Opportunities for Superior Plus and Wabash National
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and Wabash is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Wabash National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wabash National 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 Wabash National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wabash National has no effect on the direction of Superior Plus i.e., Superior Plus and Wabash National go up and down completely randomly.
Pair Corralation between Superior Plus and Wabash National
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Wabash National. But the stock apears to be less risky and, when comparing its historical volatility, Superior Plus Corp is 1.02 times less risky than Wabash National. The stock trades about -0.05 of its potential returns per unit of risk. The Wabash National is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,009 in Wabash National on August 29, 2024 and sell it today you would lose (99.00) from holding Wabash National or give up 4.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Wabash National
Performance |
| Timeline |
| Superior Plus Corp |
| Wabash National |
Superior Plus and Wabash National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Wabash National
The main advantage of trading using opposite Superior Plus and Wabash National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Wabash National 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 Wabash National will offset losses from the drop in Wabash National's long position.| Superior Plus vs. Canon Marketing Japan | Superior Plus vs. CANON MARKETING JP | Superior Plus vs. KRISPY KREME DL 01 | Superior Plus vs. SIDETRADE EO 1 |
| Wabash National vs. KION Group AG | Wabash National vs. Hyster Yale Materials Handling | Wabash National vs. Superior Plus Corp | Wabash National vs. NMI Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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