Correlation Between ACDC Metals and Super Retail
Can any of the company-specific risk be diversified away by investing in both ACDC Metals and Super Retail 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 ACDC Metals and Super Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACDC Metals and Super Retail Group, you can compare the effects of market volatilities on ACDC Metals and Super Retail 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 ACDC Metals with a short position of Super Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACDC Metals and Super Retail.
Diversification Opportunities for ACDC Metals and Super Retail
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ACDC and Super is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding ACDC Metals and Super Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Retail Group and ACDC Metals 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 ACDC Metals are associated (or correlated) with Super Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Retail Group has no effect on the direction of ACDC Metals i.e., ACDC Metals and Super Retail go up and down completely randomly.
Pair Corralation between ACDC Metals and Super Retail
Assuming the 90 days trading horizon ACDC Metals is expected to under-perform the Super Retail. In addition to that, ACDC Metals is 2.96 times more volatile than Super Retail Group. It trades about -0.04 of its total potential returns per unit of risk. Super Retail Group is currently generating about -0.06 per unit of volatility. If you would invest 1,552 in Super Retail Group on October 30, 2024 and sell it today you would lose (24.00) from holding Super Retail Group or give up 1.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACDC Metals vs. Super Retail Group
Performance |
| Timeline |
| ACDC Metals |
| Super Retail Group |
ACDC Metals and Super Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACDC Metals and Super Retail
The main advantage of trading using opposite ACDC Metals and Super Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACDC Metals position performs unexpectedly, Super Retail 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 Super Retail will offset losses from the drop in Super Retail's long position.| ACDC Metals vs. Pinnacle Investment Management | ACDC Metals vs. Sandon Capital Investments | ACDC Metals vs. Aeris Environmental | ACDC Metals vs. Hotel Property Investments |
| Super Retail vs. De Grey Mining | Super Retail vs. Galena Mining | Super Retail vs. Perseus Mining | Super Retail vs. Andean Silver Limited |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |