Correlation Between Superior Plus and Schibsted ASA
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Schibsted ASA 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 Schibsted ASA 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 Schibsted ASA B, you can compare the effects of market volatilities on Superior Plus and Schibsted ASA 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 Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Schibsted ASA.
Diversification Opportunities for Superior Plus and Schibsted ASA
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Superior and Schibsted is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Schibsted ASA B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA B 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 Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA B has no effect on the direction of Superior Plus i.e., Superior Plus and Schibsted ASA go up and down completely randomly.
Pair Corralation between Superior Plus and Schibsted ASA
Assuming the 90 days horizon Superior Plus Corp is expected to generate 0.94 times more return on investment than Schibsted ASA. However, Superior Plus Corp is 1.07 times less risky than Schibsted ASA. It trades about 0.07 of its potential returns per unit of risk. Schibsted ASA B is currently generating about -0.17 per unit of risk. If you would invest 410.00 in Superior Plus Corp on October 15, 2024 and sell it today you would earn a total of 8.00 from holding Superior Plus Corp or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Schibsted ASA B
Performance |
| Timeline |
| Superior Plus Corp |
| Schibsted ASA B |
Superior Plus and Schibsted ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Schibsted ASA
The main advantage of trading using opposite Superior Plus and Schibsted ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Schibsted ASA 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 Schibsted ASA will offset losses from the drop in Schibsted ASA's long position.| Superior Plus vs. YATRA ONLINE DL 0001 | Superior Plus vs. Salesforce | Superior Plus vs. PACIFIC ONLINE | Superior Plus vs. GungHo Online Entertainment |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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