Correlation Between Superior Plus and WuXi AppTec
Can any of the company-specific risk be diversified away by investing in both Superior Plus and WuXi AppTec 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 WuXi AppTec 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 WuXi AppTec Co, you can compare the effects of market volatilities on Superior Plus and WuXi AppTec 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 WuXi AppTec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and WuXi AppTec.
Diversification Opportunities for Superior Plus and WuXi AppTec
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Superior and WuXi is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and WuXi AppTec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WuXi AppTec 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 WuXi AppTec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WuXi AppTec has no effect on the direction of Superior Plus i.e., Superior Plus and WuXi AppTec go up and down completely randomly.
Pair Corralation between Superior Plus and WuXi AppTec
Assuming the 90 days horizon Superior Plus is expected to generate 19.17 times less return on investment than WuXi AppTec. But when comparing it to its historical volatility, Superior Plus Corp is 1.85 times less risky than WuXi AppTec. It trades about 0.01 of its potential returns per unit of risk. WuXi AppTec Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 590.00 in WuXi AppTec Co on September 19, 2024 and sell it today you would earn a total of 60.00 from holding WuXi AppTec Co or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Superior Plus Corp vs. WuXi AppTec Co
Performance |
| Timeline |
| Superior Plus Corp |
| WuXi AppTec |
Superior Plus and WuXi AppTec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and WuXi AppTec
The main advantage of trading using opposite Superior Plus and WuXi AppTec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, WuXi AppTec 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 WuXi AppTec will offset losses from the drop in WuXi AppTec's long position.| Superior Plus vs. Internet Thailand PCL | Superior Plus vs. SPORTING | Superior Plus vs. Spirent Communications plc | Superior Plus vs. Transport International Holdings |
| WuXi AppTec vs. IDEXX Laboratories | WuXi AppTec vs. Superior Plus Corp | WuXi AppTec vs. NMI Holdings | WuXi AppTec 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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