Correlation Between COREBRIDGE FINANCIAL and Superior Plus
Can any of the company-specific risk be diversified away by investing in both COREBRIDGE FINANCIAL and Superior Plus 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 COREBRIDGE FINANCIAL and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COREBRIDGE FINANCIAL INC and Superior Plus Corp, you can compare the effects of market volatilities on COREBRIDGE FINANCIAL and Superior Plus 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 COREBRIDGE FINANCIAL with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of COREBRIDGE FINANCIAL and Superior Plus.
Diversification Opportunities for COREBRIDGE FINANCIAL and Superior Plus
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COREBRIDGE and Superior is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding COREBRIDGE FINANCIAL INC and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp and COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL INC are associated (or correlated) with Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of COREBRIDGE FINANCIAL i.e., COREBRIDGE FINANCIAL and Superior Plus go up and down completely randomly.
Pair Corralation between COREBRIDGE FINANCIAL and Superior Plus
Assuming the 90 days horizon COREBRIDGE FINANCIAL INC is expected to generate 0.87 times more return on investment than Superior Plus. However, COREBRIDGE FINANCIAL INC is 1.15 times less risky than Superior Plus. It trades about 0.06 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.05 per unit of risk. If you would invest 2,594 in COREBRIDGE FINANCIAL INC on October 13, 2024 and sell it today you would earn a total of 426.00 from holding COREBRIDGE FINANCIAL INC or generate 16.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COREBRIDGE FINANCIAL INC vs. Superior Plus Corp
Performance |
| Timeline |
| COREBRIDGE FINANCIAL INC |
| Superior Plus Corp |
COREBRIDGE FINANCIAL and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COREBRIDGE FINANCIAL and Superior Plus
The main advantage of trading using opposite COREBRIDGE FINANCIAL and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COREBRIDGE FINANCIAL position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| COREBRIDGE FINANCIAL vs. Ares Management Corp | COREBRIDGE FINANCIAL vs. Superior Plus Corp | COREBRIDGE FINANCIAL vs. NMI Holdings | COREBRIDGE FINANCIAL vs. SIVERS SEMICONDUCTORS AB |
| Superior Plus vs. Brockhaus Capital Management | Superior Plus vs. NTT DATA | Superior Plus vs. Data Modul AG | Superior Plus vs. Waste Management |
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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