Correlation Between ASSA ABLOY and Supercom
Can any of the company-specific risk be diversified away by investing in both ASSA ABLOY and Supercom 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 ASSA ABLOY and Supercom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASSA ABLOY AB and Supercom, you can compare the effects of market volatilities on ASSA ABLOY and Supercom 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 ASSA ABLOY with a short position of Supercom. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASSA ABLOY and Supercom.
Diversification Opportunities for ASSA ABLOY and Supercom
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASSA and Supercom is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding ASSA ABLOY AB and Supercom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercom and ASSA ABLOY 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 ASSA ABLOY AB are associated (or correlated) with Supercom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercom has no effect on the direction of ASSA ABLOY i.e., ASSA ABLOY and Supercom go up and down completely randomly.
Pair Corralation between ASSA ABLOY and Supercom
Assuming the 90 days horizon ASSA ABLOY is expected to generate 69.83 times less return on investment than Supercom. But when comparing it to its historical volatility, ASSA ABLOY AB is 30.74 times less risky than Supercom. It trades about 0.2 of its potential returns per unit of risk. Supercom is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 344.00 in Supercom on October 23, 2024 and sell it today you would earn a total of 998.00 from holding Supercom or generate 290.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
ASSA ABLOY AB vs. Supercom
Performance |
| Timeline |
| ASSA ABLOY AB |
| Supercom |
ASSA ABLOY and Supercom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASSA ABLOY and Supercom
The main advantage of trading using opposite ASSA ABLOY and Supercom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASSA ABLOY position performs unexpectedly, Supercom 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 Supercom will offset losses from the drop in Supercom's long position.| ASSA ABLOY vs. Bridger Aerospace Group | ASSA ABLOY vs. ATWEC Technologies | ASSA ABLOY vs. Assa Abloy AB | ASSA ABLOY vs. Brinks Company |
| Supercom vs. Zedcor Inc | Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |