Correlation Between Beston Global and Super Retail
Can any of the company-specific risk be diversified away by investing in both Beston Global 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 Beston Global and Super Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beston Global Food and Super Retail Group, you can compare the effects of market volatilities on Beston Global 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 Beston Global with a short position of Super Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beston Global and Super Retail.
Diversification Opportunities for Beston Global and Super Retail
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beston and Super is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Beston Global Food 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 Beston Global 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 Beston Global Food 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 Beston Global i.e., Beston Global and Super Retail go up and down completely randomly.
Pair Corralation between Beston Global and Super Retail
Assuming the 90 days trading horizon Beston Global Food is expected to generate 6.37 times more return on investment than Super Retail. However, Beston Global is 6.37 times more volatile than Super Retail Group. It trades about 0.03 of its potential returns per unit of risk. Super Retail Group is currently generating about 0.02 per unit of risk. If you would invest 0.70 in Beston Global Food on September 2, 2024 and sell it today you would lose (0.40) from holding Beston Global Food or give up 57.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beston Global Food vs. Super Retail Group
Performance |
| Timeline |
| Beston Global Food |
| Super Retail Group |
Beston Global and Super Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beston Global and Super Retail
The main advantage of trading using opposite Beston Global and Super Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beston Global 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.| Beston Global vs. Aneka Tambang Tbk | Beston Global vs. Commonwealth Bank of | Beston Global vs. Australia and New | Beston Global vs. ANZ Group Holdings |
| Super Retail vs. Hotel Property Investments | Super Retail vs. National Australia Bank | Super Retail vs. Pioneer Credit | Super Retail vs. Magellan Financial Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |